Question

The Pension Trust Fund maintained by the city of Linden had the following transactions during 2019. Record each transaction in the Pension Trust Fund. Ignore any other funds that may be involved in a transaction.

a. Contributions of $600,000 were received from General Fund employees, and the General Fund contributed its share of $100,000.
b. The fund paid $500 for investment management fees.
c. Investments held by the fund increased in value by $3,500.
d. Depreciation on fund capital assets totaled $800.
e. Retirement benefits of $7,700 were paid to retirees.
f. Interest of $2,500 and dividends of $1,400 were received from investments

Answer 1

Date Account Title Debit Credit

XX - 2019 Cash $700,000

Additional pension Contribution - $600,000

Employees

Additional pension Contribution - $600,000

Employer

Date Account Title Debit Credit

XX - 2019 Investment management fees $500

Cash $500

Date Account Title Debit Credit

XX - 2019 Investments $3,500

Net appreciation in investment fair value $3,500

Date Account Title Debit Credit

XX - 2019 Depreciation of fund capital assets $800

Accumulated depreciation of fund $800

capital assets

Date Account Title Debit Credit

XX - 2019 Retirement benefits $7,700

Cash $7,700

Date Account Title Debit Credit

XX - 2019 Cash $3,900

Interest on investments $2,500

Dividends $1,400