(b)
Pinnacle County
Fiduciary Fund
Statement of Changes in Fiduciary Net Position
Investment Trust Fund
For the Year Ending December 31, 2012
Additions
Contributions from participating governments $125,000
(c)
Pinnacle County
Fiduciary Fund
Statement of Fiduciary Net Position
Investment Trust Fund
December 31, 2012
P8-4 (Moderate, 45 minutes)
1. Cash 100,000
2. Investments—U.S. government securities 100,000
Cash 100,000
3. Cash 73,000
4. Investments—municipal bonds 70,000
Cash 70,000
5. Deductions—administrative expenses 700
7. Deductions—distributions to pool participants 1,800
Cash 1,800
P8-5 (Moderate, 50 minutes)
1. Cash 1,000,000
Additions—contributions 1,000,000
3. Deductions—permits 500
Cash 500
5. Deductions—entertainment 12,500
8-17
6. No entry
Seaview Township
Private Purpose Trust Fund
Chancellor Community Picnic Fund
Statement of Changes in Fiduciary Net Position
For the Year Ended December 31, 2012
Additions
Deductions
Advertising 10,000
Permits 500
8-18
Seaview Township
Private Purpose Trust Fund
Chancellor Community Picnic Fund
Statement of Fiduciary Net Position
December 31, 2012
Assets
Cash $ 10,000
P8-6 (Moderate, 70 minutes)
(a)
1. Cash 2,000,000
Additions—contributions 2,000,000
5. Cash 101,000
6. Cash 112,000
Additions—interest income 112,000
8-19
(b) City of Rocky Basin
Private Purpose Trust Fund
College Scholarship Fund
Statement of Changes in Fiduciary Net Position
For the Year Ended December 31, 2012
Additions
(c)
City of Rocky Basin
Private Purpose Trust Fund
College Scholarship Fund
Statement of Fiduciary Net Position
December 31, 2012
Assets
Cash $ 148,000
8-20
Liabilities
(d)
Additions—contributions 2,000,000
Additions—interest income 215,300
P8-7 (Easy, 30 minutes)
1. EITAF Cash 70,000
Due to U.S. Treasury Department 70,000
3. EITAF Cash 75,000
Due to U.S. Treasury Department 75,000
4. EITAF Cash 70,000
8-21
5. EITAF Due to U.S. Treasury Department 215,000
6. EITAF Cash 75,000
Due to U.S. Treasury Department 75,000
Town of Boonsville
Agency Fiduciary Fund
Employees’ Income Tax Agency Fund
Trial Balance
December 31, 2012
Debits Credits
Town of Boonsville
Agency Fiduciary Fund
Employees’ Insurance Agency Fund
Trial Balance
December 31, 2012
Debits Credits
Town of Boonsville
Agency Fiduciary Fund
Employees’ Pension Agency Fund
8-22
Trial Balance
December 31, 2012
Debits Credits
P8-8 (Pension fund schedule of funding progress)
1. Funded ratio:
2. Increasing the investment earnings assumption to 8 percent has the effect of making the
actuarial accrued liability smaller than it would have been had the 7.5 percent rate been used.
3. As noted in the text, the closer the funded ratio is to 100 percent, the better funded it is.
At 52.3 percent, this system is poorly funded. (By current standards, a pension system is not
8-23
SUMMARY PROBLEMS
EMPLOYEES’ RETIREMENT PENSION TRUST FUND
1. Cash 1,000,000
2. Investments—certificates of deposit 600,000
3. Cash 315,000
Interest income receivable 315,000
4. Deductions—employee retirement benefits 6,100,000
Cash 6,100,000
6. Accrued expenses 18,000
Cash 18,000
7. Cash 510,000
8-24
(b)
Leisure City
Pension Trust Fund
Employees’ Retirement Fund
Statement of Changes in Fiduciary Net Position
For the Year Ended December 31, 2012
Additions
Contributions
Deductions
Benefits paid to plan members 6,100,000
(c)
Leisure City
Fiduciary Trust Fund
Pension Trust Fund
Statement of Fiduciary Net Position
December 31, 2012
Assets
Cash $585,750
8-25
INVESTMENT TRUST FUND
1. Cash 1,000,000
3. Cash 305,000
4. Investments—municipal bonds 300,000
Cash 300,000
5. Deductions—administrative expenses 1,000
8-26
(b)
Leisure City
Fiduciary Trust Fund
Investment Trust Fund
Statement of Changes in Fiduciary Net Position
For the Year Ended December 31, 2012
Additions
Contributions from participating governments $1,000,000
Investment earnings
Deductions
Administrative expenses 1,000
(c)
Leisure City
Fiduciary Trust Fund
Investment Trust Fund
Statement of Fiduciary Net Position
December 31, 2012
Assets
Cash $1,600
8-27
AGENCY FUND
(a)
Note: A Special Revenue Fund could have been used to collect the taxes, but Leisure City chose
to use an Agency Fund to make this situation similar to other tax collections.
1. Cash 18,000
2. Cash 150,000
Due to other governments 150,000
4. Cash 800
Due to other governments 800
6. Due to other governments 35,000
Cash 35,000
7. Cash 36,000
(b)
Leisure City
Fiduciary Trust Fund
Agency Fund
Statement of Fiduciary Net Position
December 31, 2012
Assets