ACCT 2321 SEU Journal Entries Funds Accounts Questions
Question Description
Q1. Heat Village maintains a Pension Trust Fund for its employees. At the start of the year, the Fund holds cash of $150,000 and investments that have a fair value of $4,000,000. The Fund has the following transactions. Prepare entries to record them in the Fund’s accounts. (2 Marks)
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a.Bills the General Fund $200,000 for the required annual contribution. The pension plan does not require contributions from the employees
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b.Receives payment of $200,000 from the General Fund
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c.Receives interest and dividend income of $150,000 in cash on its investment portfolio
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d.Receives $215,000 from selling investments carried on the books at $200,000
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e.Makes new investments totaling $275,000
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f.Pays annuity benefits of $325,000 to retirees or their spouses
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g.Pays administrative expenses of $100,000 in cash
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h.The investments held by the Fund have a fair value of $4,100,000 at year-end.
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Answer:
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Q2. Following information are related with Internal Service Fund of City of Jeddah. You are required to prepare a Statement of Cash Flows for the year ended December 31st, 2018. (1.5 Marks)
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|
Amount ($) |
|
|
Operating income |
68,400 |
|
Increase in Inventories |
27,200 |
|
Interest received |
800 |
|
Acquisition of Capital Assets |
2,800 |
|
Payment to Suppliers |
32,000 |
|
Depreciation expense |
29,600 |
|
Payments for Rent |
21,200 |
|
Increase in Accounts Payable |
54,400 |
|
Receipts fromCustomers |
378,400 |
|
Payment to Employees |
200,000 |
|
Cash balance at the beginning of the year |
584,800 |
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Answer:
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Q3. The following transactions are related with a Township Debt Service Fund. Prepare journal entries to record the transactions in the Debt Service Fund.(1.5 Marks)
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a.The Township levies a special property tax amounting to $1,750,000 to pay debt service on its long-term general obligation debt. The tax must be accounted for in the Debt Service Fund.
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b.All the property taxes levied for debt service purposes are collected.
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c.The Township invests $525,000 in a six-month certificate of deposit.
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d.Debt service (interest of $350,000 and principal of $700,000) becomes due and payable.
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e.The debt service liabilities are paid.
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f.The certificate of deposit in c. matures and the Township receives a total of $535,500, which includes $10,500 of interest.
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Answer:
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