The following trial balance of the Employees’ Retirement System Fund for Bedrock City was prepared by a clerk who used only balance sheet accounts in recording the events for the fiscal year ended June 30, 2018:Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 38,000 Due from the city . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000 Interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 Investments, at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 497,000 Due to resigned employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,000) Annuities payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,000) Net plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (540,000) $ 0Balance on June 30, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 464,000 Events during 2018: Amounts received from employees . . . . . . . . . . . . . . . . . . . . . . 32,000 Amounts received from employer . . . . . . . . . . . . . . . . . . . . . . . 16,000 Amount due from city at year-end . . . . . . . . . . . . . . . . . . . . . . . 4,000 Annuities paid during the year. . . . . . . . . . . . . . . . . . . . . . . . . . 13,000 Refunds made during the year . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500 Annuities payable at year-end . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000 Due to resigned employees at year-end. . . . . . . . . . . . . . . . . . . 1,000 Investment earnings received. . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 Accrued earnings at year-end . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 Difference between carrying value and fair value of the investments . . . . . . . . . . . . . . . . . . . . . . . . . . 13,500 Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 Balance on June 30, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 540,000Prepare a statement of plan net position and a statement of changes in plan net position of the Employees’ Retirement System Fund for the fiscal year ended June 30, 2018.

The following trial balance of the Employees’ Retirement System Fund for Bedrock City was prepared by a clerk who used only balance sheet accounts in recording the events for the fiscal year ended June 30, 2018:Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 38,000 Due from the city . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000 Interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 Investments, at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 497,000 Due to resigned employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,000) Annuities payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,000) Net plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (540,000) $ 0Balance on June 30, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 464,000 Events during 2018: Amounts received from employees . . . . . . . . . . . . . . . . . . . . . . 32,000 Amounts received from employer . . . . . . . . . . . . . . . . . . . . . . . 16,000 Amount due from city at year-end . . . . . . . . . . . . . . . . . . . . . . . 4,000 Annuities paid during the year. . . . . . . . . . . . . . . . . . . . . . . . . . 13,000 Refunds made during the year . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500 Annuities payable at year-end . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000 Due to resigned employees at year-end. . . . . . . . . . . . . . . . . . . 1,000 Investment earnings received. . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 Accrued earnings at year-end . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 Difference between carrying value and fair value of the investments . . . . . . . . . . . . . . . . . . . . . . . . . . 13,500 Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 Balance on June 30, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 540,000Prepare a statement of plan net position and a statement of changes in plan net position of the Employees’ Retirement System Fund for the fiscal year ended June 30, 2018.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following trial balance of the Employees’ Retirement System Fund for Bedrock City was prepared by a clerk who used only balance sheet accounts in recording the events for the fiscal year ended June 30, 2018:

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 38,000
Due from the city . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
Interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000
Investments, at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 497,000
Due to resigned employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,000)
Annuities payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,000)
Net plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (540,000)
$ 0

Balance on June 30, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 464,000
Events during 2018:
Amounts received from employees . . . . . . . . . . . . . . . . . . . . . . 32,000
Amounts received from employer . . . . . . . . . . . . . . . . . . . . . . . 16,000
Amount due from city at year-end . . . . . . . . . . . . . . . . . . . . . . . 4,000
Annuities paid during the year. . . . . . . . . . . . . . . . . . . . . . . . . . 13,000
Refunds made during the year . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500
Annuities payable at year-end . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000
Due to resigned employees at year-end. . . . . . . . . . . . . . . . . . . 1,000
Investment earnings received. . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000
Accrued earnings at year-end . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000
Difference between carrying value and
fair value of the investments . . . . . . . . . . . . . . . . . . . . . . . . . . 13,500
Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000
Balance on June 30, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 540,000

Prepare a statement of plan net position and a statement of changes in plan net position of the Employees’ Retirement System Fund for the fiscal year ended June 30, 2018.

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