The City of Richmond maintains a Public Employee Retirement Trust Fund for its public safety employees. During the year ended June 30, 2017, the following transactions occurred:1.The City contributed $ 1,200,000 in cash to the plan. Employee members contributed an additional $ 1,200,000.2.Annuity benefits in the amount of $255,000 were recorded as liabilities.3.Annuity benefits, previously recorded as liabilities, were paid in cash in the amount of $207,000.4.Investment income received in cash amounted to $102,000. In addition, $16,000 in interest receivable was accrued at year-end.5.Additional investments in the amount of $2,100,000 were purchased.6.The market value of investments decreased by $9,100.7.Nominal accounts for the year were closed.Required: Prepare journal entries for
the above transactions on the books of the City of Richmond Public Safety Employee Retirement Trust Fund.
What will be an ideal response?
| CITY OF RICHMOND |
| PUBLIC SAFETY EMPLOYEE RETIREMENT TRUST FUND |
| YEAR ENDED JUNE 30, 2017 |
| ? | Debits | Credits |
| 1 | Cash | 2,400,000 |
| Additions - Contributions-Plan Members | 1,200,000 |
| Additions - Contributions-Employer | 1,200,000 |
| 2 | Deductions - Annuity Benefits | 225,000 |
| Accounts Payable and Accrued Expenses | 225,000 |
| 3 | Accounts Payable and Accrued Expenses | 207,000 |
| Cash | 207,000 |
| 4 | Cash | 102,000 |
| Accrued Interest Receivable | 16,000 |
| Additions - Investment Earnings Interest | 118,000 |
| 5 | Investments | 2,100,000 |
| Cash | 2,100,000 |
| 6 | Deductions- Investments: Net Decline in the Fair |
| Value of Investments |
| Investments | 9,100 |
| ? | 9,100 |
| 7 | Additions - Contributions-Plan Members | 1,200,000 |
| Additions - Contributions-Employer | 1,200,000 |
| Additions - Investment Earnings Interest | 118,000 |
| Deductions - Investments: Decline in Fair |
| Value of Investments | 9,100 |
| Deductions - Annuity Benefits | 225,000 |
| Net Position: Resources Restricted for |
| Pension Benefits | 2,283,900 |
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