The Albertville City Council decided to pool the investments of its General Fund with Albertville Schools and Richwood Township in an investment pool to be managed by the city. Each of the pool participants had reported its investments at fair value as of the end of 2019. At the date of the creation of the pool, February 15, 2020, the fair value of the investments of each pool participant was as follows: City of Albertville General Fund Albertville Schools Richwood Township Total Investments 12/31/19 2/15/20 $ 892,000 $ 910,000 4,277,000 3,913,000 $9,100,000 4,204,000 3,930,000 $9,026,000 d. On June 15, Richwood Township decided to withdraw $3,030,000 for a capital projects payment. At the date of the withdrawal, the fair value of the Treasury notes had increased by $32,000. Assume that the trust fund was able to redeem the CDs necessary to complete the withdrawal without a penalty but did not receive interest on the funds. On September 15, interest on Treasury notes in the amount of $54,000 was collected. Interest on CDs accrued at year-end amounted to $32,000. At the end of the year, undistributed earnings were allocated to the investment pool participants. Assume that there were no additional changes in the fair value of investments after the Richwood Township withdrawal. Round the amount of the distribution to each fund or participant to the nearest dollar. Record the change in each participant's Equity in Pooled Investment account due to the September 15 treasury interest and December 31 CD interest accrual. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
The Albertville City Council decided to pool the investments of its General Fund with Albertville Schools and Richwood Township in an investment pool to be managed by the city. Each of the pool participants had reported its investments at fair value as of the end of 2019. At the date of the creation of the pool, February 15, 2020, the fair value of the investments of each pool participant was as follows: City of Albertville General Fund Albertville Schools Richwood Township Total Investments 12/31/19 2/15/20 $ 892,000 $ 910,000 4,277,000 3,913,000 $9,100,000 4,204,000 3,930,000 $9,026,000 d. On June 15, Richwood Township decided to withdraw $3,030,000 for a capital projects payment. At the date of the withdrawal, the fair value of the Treasury notes had increased by $32,000. Assume that the trust fund was able to redeem the CDs necessary to complete the withdrawal without a penalty but did not receive interest on the funds. On September 15, interest on Treasury notes in the amount of $54,000 was collected. Interest on CDs accrued at year-end amounted to $32,000. At the end of the year, undistributed earnings were allocated to the investment pool participants. Assume that there were no additional changes in the fair value of investments after the Richwood Township withdrawal. Round the amount of the distribution to each fund or participant to the nearest dollar. Record the change in each participant's Equity in Pooled Investment account due to the September 15 treasury interest and December 31 CD interest accrual. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![require more
[The following information applies to the questions displayed below]
The Albertville City Council decided to pool the investments of its General Fund with Albertville Schools and Richwood
Township in an investment pool to be managed by the city. Each of the pool participants had reported its investments at
fair value as of the end of 2019. At the date of the creation of the pool, February 15, 2020, the fair value of the investments
of each pool participant was as follows:
City of Albertville General Fund
Albertville Schools
Richwood Township
Total
Investments
12/31/19
$892,000
4,204,000
3,930,000
$9,026,000
2/15/20
$910,000
4,277,000
3,913,000
$9,100,000
d. On June 15, Richwood Township decided to withdraw $3.030,000 for a capital projects payment. At the date of the withdrawal, the
fair value of the Treasury notes had increased by $32,000. Assume that the trust fund was able to redeem the CDs necessary to
complete the withdrawal without a penalty but did not receive interest on the funds. On September 15, interest on Treasury notes in
the amount of $54,000 was collected. Interest on CDs accrued at year-end amounted to $32,000. At the end of the year,
undistributed earnings were allocated to the investment pool participants. Assume that there were no additional changes in the fair
value of investments after the Richwood Township withdrawal. Round the amount of the distribution to each fund or participant to
the nearest dollar. Record the change in each participants Equity in Pooled Investment account due to the September 15 treasury
interest and December 31 CD interest accrual. (If no entry is required for a transaction/event, select "No Journal Entry Required"
in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Transaction
Fund
General Journal
Debit
Credit
1. Record the change in each participant's Equity in Pooled Investment account due to the September 15 treasury interest and December 31 CD interest accrual
1 City of Albertville General Fund Equity in Pooled Investments
1,367
Revenues Investment Eamings
136,432](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc0517c72-85c6-4360-9f73-724d49df224a%2F9fdaa5d6-6803-4534-9899-f0ce554aabaa%2Fax0inx4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:require more
[The following information applies to the questions displayed below]
The Albertville City Council decided to pool the investments of its General Fund with Albertville Schools and Richwood
Township in an investment pool to be managed by the city. Each of the pool participants had reported its investments at
fair value as of the end of 2019. At the date of the creation of the pool, February 15, 2020, the fair value of the investments
of each pool participant was as follows:
City of Albertville General Fund
Albertville Schools
Richwood Township
Total
Investments
12/31/19
$892,000
4,204,000
3,930,000
$9,026,000
2/15/20
$910,000
4,277,000
3,913,000
$9,100,000
d. On June 15, Richwood Township decided to withdraw $3.030,000 for a capital projects payment. At the date of the withdrawal, the
fair value of the Treasury notes had increased by $32,000. Assume that the trust fund was able to redeem the CDs necessary to
complete the withdrawal without a penalty but did not receive interest on the funds. On September 15, interest on Treasury notes in
the amount of $54,000 was collected. Interest on CDs accrued at year-end amounted to $32,000. At the end of the year,
undistributed earnings were allocated to the investment pool participants. Assume that there were no additional changes in the fair
value of investments after the Richwood Township withdrawal. Round the amount of the distribution to each fund or participant to
the nearest dollar. Record the change in each participants Equity in Pooled Investment account due to the September 15 treasury
interest and December 31 CD interest accrual. (If no entry is required for a transaction/event, select "No Journal Entry Required"
in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Transaction
Fund
General Journal
Debit
Credit
1. Record the change in each participant's Equity in Pooled Investment account due to the September 15 treasury interest and December 31 CD interest accrual
1 City of Albertville General Fund Equity in Pooled Investments
1,367
Revenues Investment Eamings
136,432
Transcribed Image Text:d. On June 15, Richwood Township decided to withdraw $3,030,000 for a capital projects payment. At the date of the withdrawal, the
fair value of the Treasury notes had increased by $32,000. Assume that the trust fund was able to redeem the CDs necessary to
complete the withdrawal without a penalty but did not receive interest on the funds. On September 15, interest on Treasury notes in
the amount of $54,000 was collected. Interest on CDs accrued at year-end amounted to $32,000. At the end of the year,
undistributed earnings were allocated to the investment pool participants. Assume that there were no additional changes in the fair
value of investments after the Richwood Township withdrawal. Round the amount of the distribution to each fund or participant to
the nearest dollar. Record the change in each participant's Equity in Pooled Investment account due to the September 15 treasury
interest and December 31 CD interest accrual. (If no entry is required for a transaction/event, select "No Journal Entry Required"
in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Transaction
Fund
General Journal
Debit
Credit
1. Record the change in each participant's Equity in Pooled Investment account due to the September 15 treasury interest and December 31 CD interest accrual
City of Albertville General Fund Equity in Pooled Investments
1
1,367
Revenues-Investment Earnings
Albertville Schools
Richwood Township
Equity in Pooled Investments
Revenues-Investment Earnings
Equity in Pooled Investments
Revenues-Investment Earnings
3,013,870
582,731
136,432
3,013,870
582,731
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