Accounting Case Study - Computation of the Following Journal Entries
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a. Record the transactions on the books of the Employees Retirement Fund.
Solution: Computation of the Following Journal Entries
Particulars Debits Credits
1)
Cash A/c-----------------Dr $160,000
To Accrued Interest Receivable A/c $160,000
2)
Cash A/c-----------------Dr $1,160,000
To Additions-Contributions-Plan Members A/c $460,000
To Additions-Contributions-Employer A/c $700,000
3)
Deductions-Annuity Benefits A/c-----------------Dr $780,000
Deductions-Disability Benefits A/c-----------------Dr $200,000
To Accounts Payable and Accrued Expenses A/c $980,000
4)
Accounts Payable and Accrued Expenses A/c-----------------Dr $820,000
To Cash A/c $820,000
5)
Cash A/c-----------------Dr $380,000
To Additions-Investment Earnings-Interest A/c $320,000
To Additions-Investment Earnings-Dividends A/c $60,000
6)
Accrued Interest Receivable A/c-----------------Dr $160,000
To Additions-Investment Earnings-Interest A/c $160,000
7)
Deductions-Refunds to Terminated Employees A/c-----------------Dr $150,000
To Cash A/c $150,000
8)
Cash A/c----------------------Dr $472,000
Additions-Investment Earnings-Net Decrease in Fair Value of InvestmentsA/c----------------------Dr $28,000
To Investments in Common Stocks A/c $500,000
Investments in Common Stocks A/c-------------Dr $832,000
To Cash A/c $832,000
9)
Investments in Bonds A/c-----------------Dr $35,000
Additions-Investment Earnings-Net Decrease in Fair Value of Investments A/c-----------------Dr $25,000
To Investments in Common Stock A/c $60,000
10)
Additions-Contributions-Plan Members A/c-----------------Dr $460,000
Additions-Contributions-Employer A/c-----------------Dr $700,000
Additions-Investment Earnings-Interest A/c-----------------Dr $480,000
Additions-Investment Earnings-Dividends A/c-----------------Dr $60,000
To Additions-Investment Earnings-Net decrease in Fair Value of Investments A/c $53,000
To Deductions-Annuity Benefits A/c $780,000
To Deductions-Disability Benefits A/c $200,000
To Deductions-Refunds to Terminated Employees A/c $150,000
To Net Assets Held in Trust for Pension Benefits A/c $517,000
b. Prepare a Statement of Changes in Net Assets for the Employees Retirement Fund for the Year Ended June 30, 2012.
Solution: Computation of the Employees' Retirement Fund Statement Of Changes In Plan Net Assets
City of Shipley
Employees' Retirement Fund
Statement Of Changes In Plan Net Assets
For The Year Ended June 30, 2012
Particulars Debits Credits
Additions:
Contributions:
Employer
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