Essentials of Accounting For Governmental and Not-For-Profit Organizations 11th Edition Copley Solutions Manual 1

Chapter 07 – Fiduciary (Trust) Funds
Essentials of Accounting for

Governmental and Not-for-Profit
Organizations 11th Edition Copley
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CHAPTER 7 Fiduciary (Trust) Funds
7-1. THE ANSWERS TO THIS, AND TO THE FIRST EXERCISE OF CHAPTERS 1 THROUGH 9 WILL
VARY FROM STUDENT TO STUDENT, ASSUMING EACH HAS A DIFFERENT CAFR.
AGENCY FUNDS
7-2 . GASB STANDARDS REQUIRE THAT GOVERNMENTS ACCOUNT FOR SPECIAL ASSESSMENT
ACTIVITIES IN AN AGENCY FUND IF THE GOVERNMENT HAS NO OBLIGATION (PRIMARY
OR SECONDARY) TO ASSUME RESPONSIBILITY FOR DEBT PAYMENTS, EVEN IF THE
PROPERTY OWNERS DEFAULT.
IF THE GOVERNMENT HAS ANY OBLIGATION (INCLUDING GUARANTEEING THE DEBT) FOR
THE NOTE, THEN THE SPECIAL ASSESSMENT TAX RECEIPTS SHOULD BE REPORTED IN THE
DEBT SERVICE (OR GENERAL FUND) AS FUNDS RESTRICTED FOR EXPENDITURE ON
INTEREST AND PRINCIPAL ON LONG-TERM DEBT.
7-3 (A). BENTON COUNTY TAX AGENCY FUND
7-1
GENERAL JOURNAL
FY 2013/2014
DEBITS CREDITS
1. TAXES RECEIVABLE FOR OTHER GOVERNMENTS-CURRENT $39,800,000
DUE TO OTHER FUNDS AND UNITS $39,800,000
51,300,000 – 11,500,000
2. CASH 19,544,000
TAXES RECEIVABLE FOR OTHER GOVERNMENTS-CURRENT 19,544,000
3. DUE TO OTHER FUNDS AND UNITS 19,544,000

DUE TO BENTON COUNTY GENERAL FUND 293,160
DUE TO TOWN OF THOMAS 4,008,950
DUE TO TOWN OF HART 1,002,730
DUE TO BENTON COUNTY SCHOOL DISTRICT 11,299,920
DUE TO VARIOUS SPECIAL DISTRICTS 2,939,240
AMOUNT ADJUSTMENT NET

COMPUTATIONS: COLLECTED FOR FEE DUE
BENTON COUNTY GENERAL FUND 293,160 $ 293,160
TOWN OF THOMAS 4,070,000 (61,050) 4,008,950
TOWN OF HART 1,018,000 (15,270) 1,002,730
SCHOOL DISTRICT 11,472,000 (172,080) 11,299,920
VARIOUS SPECIAL DISTRICTS 2,984,000 (44,760) 2,939,240
TOTALS $19,544,000 -0- $19,544,000
7-2
4. DUE TO BENTON COUNTY GENERAL FUND 293,160

DUE TO TOWN OF THOMAS 4,008,950
DUE TO TOWN OF HART 1,002,730
DUE TO BENTON COUNTY SCHOOL DISTRICT 11,299,920
DUE TO VARIOUS SPECIAL DISTRICTS 2,939,240
CASH $19,544,000
7-3 (B). BENTON COUNTY GENERAL FUND

GENERAL JOURNAL
2013/2014
DEBITS CREDITS
1. TAXES RECEIVABLE-CURRENT 11,500,000
ESTIMATED UNCOLLECTIBLE CURRENT TAXES 230,000
REVENUES CONTROL 11,270,000
2. CASH 5,975,000
TAXES RECEIVABLE-CURRENT 5,975,000
3. DUE FROM TAX AGENCY FUND 293,160
REVENUES CONTROL 293,160
4. CASH 293,160
DUE FROM TAX AGENCY FUND 293,160
7-3 ( C).
TOWN OF THOMAS
GENERAL FUND
GENERAL JOURNAL
FY 2013/2014
DEBITS CREDITS
1. TAXES RECEIVABLE-CURRENT 6,400,000
ESTIMATED UNCOLLECTIBLE CURRENT TAXES 128,000
REVENUES CONTROL 6,272,000
3. DUE FROM TAX AGENCY FUND 4,008,950
EXPENDITURES CONTROL 61,050
TAXES RECEIVABLE-CURRENT 4,070,000
4. CASH 4,008,950
DUE FROM TAX AGENCY FUND 4,008,950
7-3
PRIVATE-PURPOSE TRUST FUNDS
7-4. IN DETERMINING THE APPROPRIATE FUND TO RECORD THE TRUST, IT IS IMPORTANT TO

DETERMINE: (1) WHETHER THE TRUST BENEFITS THE GOVERNMENT OR ITS CITIZENRY OR
(2) ALTERNATIVELY WHETHER THE TRUST BENEFITS INDIVIDUALS, PRIVATE
ORGANIZATIONS OR OTHER GOVERNEMNTS.
(1) IF THE TRUST BENEFITS INDIVIDUALS, PRIVATE ORGANIZATIONS OR OTHER

GOVERNMENTS, IT SHOULD BE REPORTED IN THE PRIVATE-PURPOSE TRUST FUND, A
FIDUCIARY TYPE FUND.
(2) IF THE TRUST BENEFITS THE GOVERNMENT OR ITS CITIZENRY, IT IS IMPORTANT TO

DETERMINE WHETHER THE TRUST PRINCIPAL (A)MUST BE MAINTAINED OR (B) IF IT CAN
BE EXPENDED FOR PURPOSES SUPPORTED BY THE TRUST.
a. IF THE TRUST PRINCIPAL MUST BE MAINTAINED, THE TRUST SHOULD BE REPORTED IN

A PERMANENT FUND.
b. IF THERE IS NO REQUIREMENT TO MAINTAIN THE PRINCIPAL, IT SHOULD BE REPORTED
IN A SPECIAL REVENUE FUND.
7-4
7-5
ALGONQUIN SCHOOL DISTRICT
SCHOLARSHIP TRUST FUND
GENERAL JOURNAL
FISCAL YEAR 2014
DEBITS CREDITS
ADDITIONS-INVESTMENT EARNINGS-INTEREST 73,400
DEDUCTIONS-INVESTMENT EARNINGS-NET
INCREASE IN FAIR VALUE OF INVESTMENTS 3,000
NET ASSETS HELD IN TRUST FOR SCHOLARSHIPS 1,600
DEDUCTIONS-ADMINISTRATIVE EXPENSES 6,000
DEDUCTIONS-DISTRIBUTIONS OF SCHOLARSHIPS 72,000
ALGONQUIN SCHOOL DISTRICT

SCHOLARSHIP TRUST FUND
FOR THE YEAR ENDED JUNE 30, 2014
ADDITIONS:
INVESTMENT EARNINGS:
INTEREST INCOME $ 73,400
NET INCREASE IN FAIR VALUE OF INVESTMENTS 3,000
TOTAL ADDITIONS
76,400
DEDUCTIONS:
ADMINISTRATIVE EXPENSES 6,000
DISTRIBUTION OF SCHOLARSHIPSNPROFIT ORGANIZATIONS 72,000
TOTAL DEDUCTIONS 78,000
CHANGE IN NET ASSETS (1,600)
NET ASSETS-BEGINNING 1,253,600
NET ASSETS-ENDING $1,252,000
7-5
7-6 (A).
CITY OF BELVEDERE
COMMUNITY TRUST FUND
GENERAL JOURNAL
JULY 1, 2013 - JUNE 30, 2014
DEBITS
CREDITS
1. CASH 3,000,000
ADDITIONS-CONTRIBUTIONS 3,000,000
2. INVESTMENT IN XYZ COMPANY BONDS 2,000,000
ACCRUED INTEREST RECEIVABLE 25,000
CASH 2,025,000
3. INVESTMENT IN ABC COMPANY STOCK 950,000
CASH 950,000
4. CASH 50,000
5. CASH 30,000
ADDITIONS-INVESTMENT EARNINGS-DIVIDENDS 30,000
6. CASH 960,000
INVESTMENT IN ABC COMPANY STOCK 950,000
ADDITIONS-INVESTMENT EARNINGS-NET
INVESTMENT IN DEF COMPANY STOCK 965,000

CASH 965,000
7. CASH 50,000
8. DEDUCTIONS-DISTRIBUTION TO COMMUNITY
NONPROFIT ORGANIZATIONS 121,500
CASH 121,500
9. DEDUCTIONS-ADMINISTRATIVE EXPENSES 5,000
CASH 5,000
10. ACCRUED INTEREST RECEIVABLE 25,000
11. INVESTMENT IN XYZ COMPANY BONDS 2,000
ADDITIONS-INVESTMENT EARNINGS-NET 3,000

DECREASE IN FAIR VALUE OF INVESTMENTS 5,000
INVESTMENT IN DEF COMPANY STOCK
7-6
7-6 (A) (CONTINUED).
DEBITS CREDITS
12. ADDITIONS-CONTRIBUTIONS 3,000,000

DEDUCTIONS-DISTRIBUTIONS TO NONPROFIT
ORGANIZATIONS 121,500
NET ASSETS HELD IN TRUST FOR
COMMUNITY NONPROFIT ORGANIZATIONS 3,010,500
7-6 (B) (1).

CITY OF BELVEDERE
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
ADDITIONS:
CONTRIBUTIONS $3,000,000
INTEREST INCOME $100,000
DIVIDEND INCOME 30,000
TOTAL INVESTMENT EARNINGS 137,000
TOTAL ADDITIONS
3,137,000
DEDUCTIONS:
DISTRIBUTION TO COMMUNITY NONPROFIT ORGANIZATIONS 121,500

CHANGE IN NET ASSETS 3,010,500
NET ASSETS-BEGINNING 0
7-7
7-6 (B) (2).

CITY OF BELVEDERE
STATEMENT OF FIDUCIARY NET ASSETS
AS OF JUNE 30, 2014
ASSETS:
CASH $ 23,500
INVESTMENTS, AT FAIR VALUE:
XYZ COMPANY BONDS $2,002,000
DEF COMPANY STOCK 960,000
TOTAL INVESTMENTS 2,962,000
TOTAL ASSETS $3,010,500
LIABILITIES: --0--
NET ASSETS:
HELD IN TRUST FOR DISTRIBUTION TO COMMUNITY
NONPROFIT ORGANIZATIONS $3,010,500
7-8
7-7 (A).
MORGAN COUNTY SCHOOL DISTRICT
CIVIC SCHOLARSHIP FUND
GENERAL JOURNAL
JULY 1, 2013 - JUNE 30, 2014
DEBITS CREDITS
1. CASH 30,000
ADDITIONS-CONTRIBUTIONS 30,000
INVESTMENTS 30,000
CASH 30,000
2. CASH 4,250
INVESTMENTS 3,000
3. DEDUCTIONS-SCHOLARSHIP AWARDS 4,250
CASH 4,250
4. ADDITIONS-CONTRIBUTIONS 30,000
DEDUCTIONS-SCHOLARSHIP AWARDS 4,250
NET ASSETS HELD IN TRUST FOR 27,000
SCHOLARSHIP AWARDS
(B).
MORGAN COUNTY SCHOOL DISTRICT
CIVIC SCHOLARSHIP FUND
ADDITIONS:
CONTRIBUTIONS $30,000
INVESTMENT INCOME: INTEREST 1,250
TOTAL ADDITIONS 31,250

DEDUCTIONS:
SCHOLARSHIP AWARDS 4,250
CHANGE IN NET ASSETS 27,000
NET ASSETS-BEGINNING 0
NET ASSETS-ENDING $ 27,000
7-9
INVESTMENT TRUST FUNDS
7-8.
(A). INVESTMENT TRUST FUNDS ARE AN APPROPRIATE CLASSIFICATION FOR GOVERNMENTS
THAT ADMINISTER MULTIGOVERNMENT EXTERNAL INVESTMENT POOLS.
(B). THE PORTION THAT SHOULD BE INCLUDED IS THE EXTERNAL PORTION; THE FUNDS THAT
BELONG TO THE SPONSORING GOVERNMENT SHOULD NOT BE REPORTED IN THE
INVESTMENT TRUST FUNDS BUT IN THE FUNDS THAT PROVIDE THE INVESTMENTS.
FOR EXAMPLE, ASSUME A COUNTY MAINTAINS AN INVESTMENT POOL FOR ITSELF (THE COUNTY
GENERAL FUND), A CITY, AND A SCHOOL DISTRICT. ONLY THE PORTION OF THE INVESTMENT POOL
PROVIDED BY THE CITY AND SCHOOL DISTRICT WOULD BE REPORTED IN THE FIDUCIARY FUND ,
INVESTMENT TRUST FUND. THE PORTION PROVIDED BY THE GENERAL FUND WOULD BE REPORTED AS
INVESTMENTS IN THE GENERAL FUND.
(C). INVESTMENTS ARE TO BE REPORTED AT FAIR VALUE, WHEN DETERMINABLE.
(D). BOTH REALIZED AND UNREALIZED GAINS AND LOSSES ARE TO BE REPORTED IN ONE LINE
ITEM IN THE STATEMENTS; IT IS NOT PERMISSABLE TO REPORT REALIZED AND
UNREALIZED GAINS AND LOSSES SEPARATELY. A GOVERNMENT MAY CHOOSE TO
DISCLOSE THE REALIZED GAINS OR LOSSES IN THE NOTES.
(E). INVESTMENT TRUST FUNDS ARE CONSIDERED FIDUCIARY FUNDS AND ARE REPORTED IN
THE STATEMENT OF FIDUCIARY NET ASSETS AND THE STATEMENT OF CHANGES IN
FIDUCIARY NET ASSETS. AS IS THE CASE WITH OTHER FIDUCIARY FUNDS, INVESTMENT
TRUST FUNDS ARE NOT INCLUDED IN THE GOVERNMENT-WIDE STATEMENTS.
7-9
BAIRD COUNTY
INVESTMENT TRUST FUND
GENERAL JOURNAL
FISCAL YEAR 2014
DEBITS CREDITS
ADDITIONS- DEPOSITS FROM SCHOOL BOARD 220,000
ADDITIONS – DEPOSITS FROM TOWN OF BAIRDVILLE 110,000
ADDITIONS -INVESTMENT EARNINGS-NET
NET ASSETS HELD IN TRUST FOR SCHOOL DISTRICT 254,667
NET ASSETS HELD IN TRUST FOR TOWN OF BAIRDSVILLE 127,333
7-10
7-9 CONTINUED
BAIRD COUNTY
INVESTMENT TRUST FUND
ADDITIONS:
INTEREST INCOME $ 66,000
NET DECREASE IN FAIR VALUE OF INVESTMENTS (14,000)
TOTAL EARNINGS 52,000
DEPOSITS FROM OTHER GOVERNMENTS:
220,000
DEPOSITS FROM SCHOOL DISTRICT
110,000
DEPOSITS FROM TOWN OF BAIRDSVILLE
TOTAL DEPOSITS 330,000
TOTAL ADDITIONS 382,000
DEDUCTIONS:
TOTAL DEDUCTIONS 0
CHANGE IN NET ASSETS 382,000
NET ASSETS-BEGINNING 1,500,000

PENSION TRUST FUNDS
7-10. THE REQUIRED STATEMENTS FOR A PENSION TRUST FUND ARE (A) STATEMENT OF PLAN
NET ASSETS AND (B) STATEMENT OF CHANGES IN PLAN NET ASSETS.
THE REQUIRED SCHEDULES ARE (A) SCHEDULE OF FUNDING PROGRESS AND (B)
SCHEDULE OF EMPLOYER CONTRIBUTIONS.
7-11
7-11.
A. 1. A DEFINED CONTRIBUTION PLAN IS A PENSION PLAN IN WHICH THE BENEFITS ARE

LIMITED TO THE CONTRIBUTIONS MADE BY EMPLOYERS AND EMPLOYEES PLUS
INVESTMENT INCOME. NO CERTAIN AMOUNT OF BENEFITS ARE GUARANTEED; THE
AMOUNT OF PAYMENTS IS DETERMINED BY CONTRIBUTIONS AND THE INVESTMENT
PERFORMANCE OF ACCUMULATED FUNDS. AS A RESULT, DEFINED CONTRIBUTION PLANS
DO NOT HAVE UNFUNDED LIABILITIES. EMPLOYER REPORTING IS MUCH SIMPLER, AS
THERE IS NO NEED FOR ACTUARIAL CALCULATIONS.
A.2. A DEFINED BENEFIT PLAN, ON THE OTHER HAND, IS A PLAN THAT IS REQUIRED TO PAY A
CERTAIN SUM, NORMALLY BASED ON AVERAGE EARNINGS AND LENGTH OF SERVICE.
FOR EXAMPLE, A PLAN MAY PAY TWO PER CENT OF EARNINGS TIMES THE AVERAGE OF
THE HIGHEST FOUR CONSECUTIVE YEARS, TIMES THE NUMBER OF YEARS' SERVICE. THIS
PAYMENT IS DUE, REGARDLESS OF THE AMOUNT AVAILABLE IN THE PENSION PLAN. AS A
RESULT, IT IS NECESSARY TO USE ACTUARIAL METHODS TO DETERMINE IF A DEFINED
BENEFIT PLAN HAS AN UNFUNDED ACTUARIAL LIABILITY. DEFINED BENEFIT PLANS
REQUIRE MORE DISCLOSURE IN FINANCIAL REPORTS THAN DO DEFINED CONTRIBUTION
PLANS.
B. 1. AN AGENT MULTIEMPLOYER RETIREMENT PLAN IS A PLAN IN WHICH SEPARATE

ACCOUNTS ARE KEPT FOR EACH EMPLOYER. REQUIRED AND ACTUAL CONTRIBUTIONS
BY EMPLOYERS WOULD BE RECORDED OVER THE YEARS. AS A RESULT, IT IS POSSIBLE
TO COMPUTE THE ACTUARIAL STATUS OF EACH INDIVIDUAL EMPLOYER.
B. 2. A COST-SHARING MULTIEMPLOYER RETIREMENT PLAN IS A PLAN IN WHICH SEPARATE

ACCOUNTS ARE NOT KEPT FOR EACH EMPLOYER. AS A RESULT, IT IS NOT POSSIBLE TO
COMPUTE A SEPARATE BALANCE FOR EACH EMPLOYER, DEPENDING UPON THE AMOUNTS
CONTRIBUTED. ACCORDINGLY, THE PLAN IS TREATED AS STATE-WIDE, WITH EACH
EMPLOYER REQUIRED TO CONTRIBUTE AT A CERTAIN RATE IN ORDER TO MAINTAIN
SUFFICIENT FUNDS TO PAY BENEFITS WHEN DUE.
C. 1. THE ANNUAL REQUIRED CONTRIBUTION (ARC) IS COMPUTED FOR DEFINED BENEFIT

PENSION PLANS. THIS IS THE ACTUARIALLY DETERMINED FIGURE THAT INCLUDES THE
NORMAL COST (THE PRESENT VALUE OF FUTURE PAYMENTS BASED ON SALARIES
EARNED THIS YEAR) PLUS AN AMOUNT TO AMORTIZE THE UNFUNDED ACTUARIAL
LIABILITY.
C. 2. THE NET PENSION OBLIGATION (NPO) IS THE CUMULATIVE DIFFERENCE BETWEEN THE
EMPLOYERS ACTUARIALLY REQUIRED CONTRIBUTIONS AND THE CONTRIBUTIONS
ACTUALLY MADE. THE NPO WILL BE RECORDED AS A LIABILITY IN THE GOVERNMENT-
WIDE STATEMENTS.
7-12
7-11 CONTINUED
D. 1. AGENT MULTIEMPLOYER PLANS WOULD REPORT EXPENDITURES OR EXPENSES

(DEPENDING ON THE BASIS OF ACCOUNTING) BASED ON AN ACTUARIAL CALCULATION
PREPARED SOLELY FOR THAT EMPLOYER.
D.2. COST SHARING MULTI-EMPLOYER PLANS WOULD REPORT EXPENDITURES OR EXPENSES

BASED ON ACTUARIAL CALCULATIONS PREPARED ON A STATE-WIDE BASIS, RATHER
THAN FOR INDIVIDUAL EMPLOYERS.
E. 1. PENSION EXPENDITURES FOR GENERAL GOVERNMENT EMPLOYEES WOULD BE

REPORTED FOR THE YEAR IN THE GENERAL OR ANOTHER GOVERNMENTAL FUND. THE
AMOUNT WOULD BE LIMITED TO THE AMOUNT THAT WILL BE PAID WITH AVAILABLE
FINANCIAL RESOURCES. THE DIFFERENCE BETWEEN THE ANNUAL PENSION COST AND
THE AMOUNT RECOGNIZED AS EXPENDITURE WOULD BE ADDED TO THE NPO.
E.2. PENSION EXPENSES FOR PROPRIETARY FUNDS WOULD BE REPORTED AS FUND EXPENSES.
THE NPO IS RECORDED AS A FUND LIABILITY.
7-12.
A. IF THE GOVERNMENT IS TRUSTEE OF THE PENSION PLAN, IT IS REQUIRED TO REPORT THE
PLAN AS A FIDUCIARY FUND IN ITS FUND FINANCIAL STATEMENTS. AS A RESULT, IT S
INCLUDED IN THE STATEMENT OF FIDUCIARY NET ASSETS AND THE STATEMENT OF
CHANGES IN FIDUCIARY NET ASSETS. PENSION TRUST AND OTHER FIDUCIARY FUNDS ARE
NOT INCLUDED IN THE GOVERNMENT-WIDE FINANCIAL STATEMENTS.
IN ADDITION TO THE TWO STATEMENTS, TWO REQUIRED SUPPLEMENTARY INFORMATION

(RSI) SCHEDULES ARE REQUIRED: A SCHEDULE OF FUNDING PROGRESS AND A SCHEDULE
OF EMPLOYER CONTRIBUTIONS.
B. THE STATEWIDE PLAN IS NOT INCLUDED IN THE STATEMENTS OF THE LOCAL GOVERNMENT
SINCE THE LOCAL GOVERNMENTAL UNIT IS NOT TRUSTEE FOR THE PLAN.
IT IS NECESSARY FOR THE LOCAL GOVERNMENT TO MEET THE EMPLOYER REPORTING
STANDARDS OF GASB, HOWEVER. AS A RESULT, EXPENDITURES AND EXPENSES WILL BE
REPORTED BY THE GOVERNMENTAL AND PROPRIETARY FUNDS CONTRIBUTING TO THE
PLAN. IF A GOVERNMENT HAS A NET PENSION OBLIGATION (NPO), THAT AMOUNT WOULD
BE REPORTED AS A LIABILITY IN THE GOVERNMENT-WIDE STATEMENTS. THE
GOVERNMENT-WIDE STATEMENTS WILL INCLUDE EXPENSES UNDER THE GOVERNMENTAL
AND BUSINESS-TYPE ACTIVITIES, AS APPROPRIATE. NOTE DISCLOSURES ARE REQUIRED, AS
OUTLINED IN THIS CHAPTER AND ARE MORE EXTENSIVE FOR AGENT MULTIEMPLOYER
PLANS THAN FOR COST-SHARING MULTIEMPLOYER PLANS.
7-13
7-13 (A). CITY OF SWEETWATER EMPLOYEES' RETIREMENT FUND

GENERAL JOURNAL
FY ENDED 6/30/2014
DEBITS CREDITS
1. CASH 60,000
2. CASH 1,000,000
ADDITIONS-CONTRIBUTIONS-PLAN MEMBERS 250,000
ADDITIONS-CONTRIBUTIONS-EMPLOYER 750,000
3. DEDUCTIONS-ANNUITY BENEFITS 700,000
DEDUCTIONS-DISABILITY BENEFITS 150,000
ACCOUNTS PAYABLE AND ACCRUED EXPENSES 850,000
4. ACCOUNTS PAYABLE AND ACCRUED EXPENSES 900,000
CASH 900,000
5. CASH 280,000
6. DEDUCTIONS-REFUNDS TO TERMINATED EMPLOYEES 130,000
CASH 130,000
7. CASH 480,000
INVESTMENTS IN COMMON STOCKS 500,000
INVESTMENTS IN COMMON STOCKS 780,000

CASH 780,000
8. INVESTMENTS IN BONDS 35,000

INVESTMENTS IN COMMON STOCK 50,000
7-14
7-13(A) CONTINUED
9. ADDITIONS-CONTRIBUTIONS-PLAN MEMBERS 250,000

ADDITIONS-CONTRIBUTIONS-EMPLOYER 750,000
ADDITIONS-INVESTMENT EARNINGS-NET DECREASE
IN FAIR VALUE OF INVESTMENTS 35,000
DEDUCTIONS-ANNUITY BENEFITS 700,000
DEDUCTIONS-DISABILITY BENEFITS 150,000
DEDUCTIONS-REFUNDS TO TERMINATED EMPLOYEES 130,000
NET ASSETS HELD IN TRUST FOR PENSION BENEFITS 315,000
7-13 (B). CITY OF SWEETWATER

EMPLOYEES' RETIREMENT FUND
STATEMENT OF CHANGES IN PLAN NET ASSETS
ADDITIONS:
CONTRIBUTIONS:
EMPLOYER $ 750,000
MEMBER 250,000
TOTAL CONTRIBUTIONS 1,000,000
INVESTMENT INCOME:
INTEREST $290,000
DIVIDENDS 40,000
NET DECREASE IN FAIR VALUE OF INVESTMENTS (35,000)
TOTAL INVESTMENT INCOME 295,000
TOTAL ADDITIONS 1,295,000
DEDUCTIONS:
ANNUITY BENEFITS 700,000
DISABILITY BENEFITS 150,000
REFUNDS TO TERMINATED EMPLOYEES 130,000
NET INCREASE 315,000
NET ASSETS HELD IN TRUST FOR PENSION BENEFITS:
BEGINNING OF YEAR 5,635,000
END OF YEAR $5,950,000
7-15
7-13 (C). CITY OF SWEETWATER

EMPLOYEES' RETIREMENT FUND
STATEMENT OF NET ASSETS
AS OF JUNE 30, 2014
ASSETS:
CASH $ 135,000
INVESTMENTS, AT FAIR VALUE:
BONDS 4,535,000
STOCKS 1,530,000
TOTAL ASSETS 6,250,000
LIABILITIES:
NET ASSETS HELD IN TRUST FOR PENSION BENEFITS $5,950,000
7-16
7-14 (1).
ALGER COUNTY SCHOOL DISTRICT
EMPLOYEE HEALTH BENEFIT PLAN
GENERAL LEDGER
DEBITS CREDITS
ADDITIONS-CONTRIBUTIONS – EMPLOYER 659,000
ADDITIONS-CONTRIBUTIONS – EMPLOYEE 355,000
DEDUCTIONS-BENEFITS PAID TO RETIREES 523,000
NET ASSETS HELD IN TRUST FOR EMPLOYEE
POSTEMPLOYMENT HEALTHCARE 999,000
7-14 (2). ALGER COUNTY SCHOOL DISTRICT

STATEMENT OF CHANGES IN PLAN NET ASSETS
ADDITIONS:
CONTRIBUTIONS:
EMPLOYEE $ 659,000
EMPLOYEE 355,000
INVESTMENT INCOME:
INTEREST $127,300
DIVIDENDS 75,000
TOTAL INVESTMENT INCOME 530,300
DEDUCTIONS:
HEALTHCARE BENEFITS 523,000
ADMINISTRATIVE EXPENSE 22,300
NET INCREASE 999,000

POSTEMPLOYMENT HEALTHCARE:
BEGINNING OF YEAR 3,454,200
END OF YEAR $4,453,200
7-17
7-14 (3).
ALGER COUNTY SCHOOL DISTRICT
AS OF JUNE 30, 2014
ASSETS:
CASH $ 15,500
RECEIVABLES:
EMPLOYER 190,000
EMPLOYEES 90,000
ACCRUED INTEREST 10,200
TOTAL RECEIVABLES 290,200
INVESTMENTS, AT FAIR VALUE: 650,000

US SECURITIES 1,227,000
BONDS 2,272,000
STOCKS 4,149000
TOTAL INVESTMENTS $ 4,454,700
TOTAL ASSETS
LIABILITIES:
POSTEMPLOYMENT HEALTHCARE $4,453,200
7-18
7-15(A) SOLUTIONS TO THE EXCEL BASED EXERCISES ARE ALSO AVAILABLE IN EXCEL ON
THE INSTRUCTOR’S WEBSITE
HAMILTON COUNTY
OPEB TRUST FUND
31-DEC-2014
ACCOUNT TITLE DEBITS CREDITS
1 CASH 18,000,000
ADDITIONS - EMPLOYER CONTRIBUTIONS 18,000,000
2 CASH 4,020,000
CONTRIBUTIONS RECEIVABLE 180,000
ADDITIONS - MEMBER CONTRIBUTIONS 4,200,000
3 INVESTMENTS IN US GOV'T SECURITIES 31,000,000

CASH 31,000,000
4 INTEREST RECEIVABLE 7,000

CASH 1,431,000
ADDITIONS - INTEREST INCOME 1,438,000
5 CASH 388,000
ADDITIONS - MEDICARE DRUG SUBSIDY 388,000
6 DEDUCTIONS - EMPLOYEE BENEFITS 10,903,000

CASH 9,575,000
ACCOUNTS PAYABLE 1,328,000
7 DEDUCTIONS - ADMINISTRATIVE EXPENSES 132,000

CASH 132,000
HAMILTON COUNTY
DOMESTIC RELATIONS AGENCY FUND
31-DEC-2014
8 CASH 390,000
DUE TO STATE GOVERNMENT 390,000
9 DUE TO STATE GOVERNMENT 407,800
CASH 407,800
7-19
7-15 (C)
HAMILTON COUNTY
OPEB TRUST FUND CLOSING ENTRIES
DECEMBER 31,2014
ADDITIONS:
EMPLOYER CONTRIBUTIONS 18,000,000
MEMBER CONTRIBUTIONS 4,200,000
INTEREST INCOME 1,438,000
MEDICARE SUBSIDY 388,000
DEDUCTIONS:
EMPLOYEE BENEFITS 10,903,000
ADMIN EXPENSES 132,000
NET ASSETS HELD IN TRUST FOR OPEB BENEFITS 12,991,000
HAMILTON COUNTY
AGENCY FUND CLOSING ENTRIES
DECEMBER 310,2014

NONE - AGENCY FUNDS DO NOT HAVE CLOSING ENTRIES
7-20
7-15 (D)
HAMILTON COUNTY
FOR THE YEAR ENDED DECEMBER 31, 2014
OPEB TRUST
FUND
ADDITIONS
CONTRIBUTIONS:
EMPLOYER CONTRIBUTIONS $ 18,000,000
MEMBER CONTRIBUTIONS 4,200,000
OTHER ADDITIONS:
MEDICARE SUBSIDY 388,000
INTEREST INCOME 1,438,000
DEDUCTIONS
EMPLOYEE BENEFITS 10,903,000
TOTAL DEDUCTIONS 11,035,000
NET CHANGE IN NET ASSETS 12,991,000

NET ASSETS BEGINNING OF YEAR 21,000,000
NET ASSETS END OF YEAR $ 33,991,000
7-21
7-15 (E)
HAMILTON COUNTY
STATEMENT OF FIDUCIARY NET ASSETS
DECEMBER 31, 2014
DOMESTIC TOTAL
OPEB TRUST RELATIONS FIDUCIARY
FUND AGENCY FUND FUNDS
ASSETS
CASH $ 4,132,000 $ 35,700 $ 4,167,700
INVESTMENT IN US SECURITIES 31,000,000 31,000,000
MEMBER CONTRIBUTIONS RECEIVABLE 180,000 180,000
ACCRUED INTEREST RECEIVABLE 7,000 7,000
TOTAL ASSETS $ 35,319,000 $ 35,700 $ 35,354,700
LIABILITIES AND FUND EQUITY
LIABILITIES
ACCOUNTS PAYABLE 1,328,000 1,328,000
DUE TO STATE GOVERNMENT 35,700 35,700
TOTAL LIABILITIES 1,328,000 35,700 1,363,700
NET ASSETS
HELD IN TRUST FOR EMPLOYEE POST
EMPLOYMENT BENEFITS 33,991,000 33,991,000
TOTAL NET ASSETS $ 33,991,000 $ - $ 33,991,000
7-22
7-16 PART 1 (A) SOLUTIONS TO THE EXCEL BASED EXERCISES ARE ALSO AVAILABLE IN EXCEL ON
THE INSTRUCTOR’S WEBSITE
MOOSE COUNTY
PERMANENT FUND JOURNAL ENTRIES
DECEMBER 31, 2014

1 INVESTMENTS - CORPORATE EQUITIES 2,700,000
INVESTMENTS - CORPORATE BONDS 3,000,000
REVENUES - ADDITIONS TO PERMANENT ENDOWMENTS 5,760,000
2 CASH 180,000
REVENUES - INVESTMENT INCOME - INTEREST 120,000

3 CASH 216,000
REVENUES - INVESTMENT INCOME -DIVIDENDS 216,000
4 EXPENDITURES - TRUST ACTIVITIES 378,700

CASH 365,000
ACCOUNTS PAYABLE 13,700
5 INVESTMENTS - CORPORATE BONDS 190,000

INVESTMENTS - CORPORATE EQUITIES 150,000
REVENUES - NET INCREASE IN FAIR VALUE OF INVESTMENTS 40,000
7-16 PART 1 (C)
MOOSE COUNTY
PERMANENT FUND CLOSING ENTRIES
DECEMBER 31, 2014
REVENUES - ADDITIONS TO PERMANENT ENDOWMENTS 5,760,000

REVENUES - INVESTMENT INCOME - DIVIDENDS 216,000
REVENUES - NET INCREASE IN FAIR VALUE OF INVESTMENTS 40,000
EXPENDITURES - TRUST ACTIVITIES 378,700
FUND BALANCE 5,802,300
7-23
7-16 PART 1 (D)

MOOSE COUNTY
STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED 12-31-2014
PERMANENT FUND
REVENUES
ADDITIONS TO PERMANENT ENDOWMENT $ 5,760,000
INVESTMENT INCOME:
INTEREST 165,000
DIVIDENDS 216,000
TOTAL REVENUES 6,181,000
EXPENDITURES
CURRENT:
TRUST ACTIVITIES 378,700
TOTAL EXPENDITURES 378,700

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 5,802,300
OTHER FINANCING SOURCES (USES)

TRANSFERS OUT
TOTAL OTHER FINANCING SOURCES (USES) -
NET CHANGE IN FUND BALANCE 5,802,300

FUND BALANCE, JANUARY 1 -
FUND BALANCE, DECEMBER 31 $ 5,802,300
7-24
7-16 PART 1 (E)
MOOSE COUNTY
BALANCE SHEET
AS OF 12-31-2014
PERMANENT
FUND
ASSETS
CASH $ 31,000
INVESTMENTS IN CORPORATE EQUITIES 2,550,000
INVESTMENTS IN CORPORATE BONDS 3,190,000
TOTAL ASSETS $ 5,816,000
LIABILITIES AND FUND BALANCES

LIABILITIES
TOTAL LIABILITIES 13,700
FUND BALANCES
NONSPENDABLE
PERMANENT FUND PRINCIPAL 5,760,000
RESTRICTED FOR OTHER PURPOSES 42,300
TOTAL FUND BALANCE 5,802,300
TOTAL LIABILITIES AND FUND BALANCE $ 5,816,000
7-25
7-16 PART 2 (A)
MOOSE COUNTY
PRIVATE PURPOSE TRUST FUND ENTRIES
DECEMBER 31, 2014

1 INVESTMENTS - CORPORATE EQUITIES 2,700,000
INVESTMENTS - CORPORATE BONDS 3,000,000
ADDITIONS - CONTRIBUTIONS FROM
CITIZENS 5,760,000
2 CASH 180,000
ADDITIONS - INVESTMENT INCOME -
INTEREST 120,000

ADDITIONS - INVESTMENT INCOME -
INTEREST 45,000
3 CASH 216,000
ADDITIONS - INVESTMENT INCOME -DIVIDENDS 216,000
DEDUCTIONS - EXPENSES FOR TRUST

4 ACTIVITIES 378,700
CASH 365,000
5 INVESTMENTS - CORPORATE BONDS 190,000

INVESTMENTS - CORPORATE EQUITIES 150,000
ADDITIONS - NET INCREASE IN FAIR VALUE OF INVESTMENTS 40,000
7-16 PART 2 (C)

MOOSE COUNTY
PRIVATE PURPOSE TRUST FUND CLOSING ENTRIES
DECEMBER 31, 2014
ADDITIONS - CONTRIBUTIONS FROM CITIZENS 5,760,000

ADDITIONS - INVESTMENT INCOME - INTEREST 165,000
ADDITIONS - INVESTMENT INCOME -DIVIDENDS 216,000
ADDITIONS - NET INCREASE IN FAIR VALUE OF INVESTMENTS 40,000
DEDUCTIONS - EXPENSES FOR TRUST ACTIVITIES 378,700
NET ASSETS HELD IN TRUST 5,802,300
7-26
7-16 PART 2 (D) MOOSE COUNTY

STATEMENT OF REVENUES EXPENSES AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED 12-31-2014
PRIVATE PURPOSE
TRUST FUND
ADDITIONS
CONTRIBUTIONS: $ 5,760,000
INVESTMENT INCOME:
INTEREST 165,000
DIVIDENDS 216,000
DEDUCTIONS
TRUST ACTIVITIES 378,700
NET CHANGE IN NET ASSETS 5,802,300
NET ASSETS BEGINNING OF YEAR -
NET ASSETS END OF YEAR $ 5,802,300
7-16 PART 2 (E) MOOSE COUNTY

AS OF 12-31-2014
PRIVATE PURPOSE
TRUST FUND
ASSETS
CASH $ 31,000
INVESTMENTS IN CORPORATE EQUITIES 2,550,000
INVESTMENTS IN CORPORATE BONDS 3,190,000
TOTAL ASSETS $ 5,816,000
LIABILITIES AND FUND EQUITY
LIABILITIES
TOTAL LIABILITIES 13,700
NET ASSETS
HELD IN TRUST FOR PRIVATE PURPOSE
TRUST FUND ACTIVITIES 5,802,300
TOTAL NET ASSETS $ 5,802,300
7-27

Essentials of Accounting For Governmental and Not-For-Profit Organizations 11th Edition Copley Solutions Manual 1

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Essentials of Accounting For Governmental and Not-For-Profit Organizations 11th Edition Copley Solutions Manual 1

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Chapter 07 – Fiduciary (Trust) Funds

Essentials of Accounting for

Test Bank: https://testbankpack.com/p/test-bank-for-

Solution Manual: https://testbankpack.com/p/solution-

CHAPTER 7 Fiduciary (Trust) Funds

7-3 (A). BENTON COUNTY TAX AGENCY FUND

3. DUE TO OTHER FUNDS AND UNITS 19,544,000

AMOUNT ADJUSTMENT NET

4. DUE TO BENTON COUNTY GENERAL FUND 293,160

7-3 (B). BENTON COUNTY GENERAL FUND

PRIVATE-PURPOSE TRUST FUNDS

7-4. IN DETERMINING THE APPROPRIATE FUND TO RECORD THE TRUST, IT IS IMPORTANT TO

(1) IF THE TRUST BENEFITS INDIVIDUALS, PRIVATE ORGANIZATIONS OR OTHER

(2) IF THE TRUST BENEFITS THE GOVERNMENT OR ITS CITIZENRY, IT IS IMPORTANT TO

a. IF THE TRUST PRINCIPAL MUST BE MAINTAINED, THE TRUST SHOULD BE REPORTED IN

ALGONQUIN SCHOOL DISTRICT

TOTAL DEDUCTIONS 78,000

CHANGE IN NET ASSETS (1,600)

NET ASSETS-BEGINNING 1,253,600

NET ASSETS-ENDING $1,252,000

INVESTMENT IN DEF COMPANY STOCK 965,000

11. INVESTMENT IN XYZ COMPANY BONDS 2,000

ADDITIONS-INVESTMENT EARNINGS-NET 3,000

7-6 (A) (CONTINUED).

12. ADDITIONS-CONTRIBUTIONS 3,000,000

7-6 (B) (1).

TOTAL INVESTMENT EARNINGS 137,000

TOTAL DEDUCTIONS 126,500

7-6 (B) (2).

TOTAL ADDITIONS 31,250

INVESTMENT TRUST FUNDS

(C). INVESTMENTS ARE TO BE REPORTED AT FAIR VALUE, WHEN DETERMINABLE.

NET ASSETS-BEGINNING 1,500,000

PENSION TRUST FUNDS

A. 1. A DEFINED CONTRIBUTION PLAN IS A PENSION PLAN IN WHICH THE BENEFITS ARE

B. 1. AN AGENT MULTIEMPLOYER RETIREMENT PLAN IS A PLAN IN WHICH SEPARATE

B. 2. A COST-SHARING MULTIEMPLOYER RETIREMENT PLAN IS A PLAN IN WHICH SEPARATE

C. 1. THE ANNUAL REQUIRED CONTRIBUTION (ARC) IS COMPUTED FOR DEFINED BENEFIT

D. 1. AGENT MULTIEMPLOYER PLANS WOULD REPORT EXPENDITURES OR EXPENSES

D.2. COST SHARING MULTI-EMPLOYER PLANS WOULD REPORT EXPENDITURES OR EXPENSES

E. 1. PENSION EXPENDITURES FOR GENERAL GOVERNMENT EMPLOYEES WOULD BE

IN ADDITION TO THE TWO STATEMENTS, TWO REQUIRED SUPPLEMENTARY INFORMATION

7-13 (A). CITY OF SWEETWATER EMPLOYEES' RETIREMENT FUND

INVESTMENTS IN COMMON STOCKS 780,000

8. INVESTMENTS IN BONDS 35,000

9. ADDITIONS-CONTRIBUTIONS-PLAN MEMBERS 250,000

7-13 (B). CITY OF SWEETWATER

7-13 (C). CITY OF SWEETWATER

NET ASSETS HELD IN TRUST FOR PENSION BENEFITS $5,950,000

7-14 (2). ALGER COUNTY SCHOOL DISTRICT

NET ASSETS HELD IN TRUST FOR EMPLOYEE

INVESTMENTS, AT FAIR VALUE: 650,000

3 INVESTMENTS IN US GOV'T SECURITIES 31,000,000

4 INTEREST RECEIVABLE 7,000

6 DEDUCTIONS - EMPLOYEE BENEFITS 10,903,000

7 DEDUCTIONS - ADMINISTRATIVE EXPENSES 132,000

ACCOUNT TITLE DEBITS CREDITS

ACCOUNT TITLE DEBITS CREDITS

NET CHANGE IN NET ASSETS 12,991,000

ACCOUNT TITLE DEBITS CREDITS

ACCRUED INTEREST RECEIVABLE 45,000

4 EXPENDITURES - TRUST ACTIVITIES 378,700