The Ciry of Sweetwater mainains in trust the Employees' Retirement Fund, a single employer defined benefit plan that provides annulty and disability benefits. The fund is financed by actuarially determined contributions from the city's General Fund and by coneributions from employees. Administration of the retirement fund is handled by General fund employees, and the retirement fund does not bear any administrative expenses. The Statement of Fiduclary Net Position for the Employees' Retirement Fund as of July 1. 2023, is shown here:
\table[[\table[[CITY OF SACTRATER],[teployees' Eetlirement Fund Statement of Piduciary Nent Position As of July 1, 2023]]],[Masets,5341,000],[Accrued Interest Receivable,40,000],[Investments, at fair Value:,],[Jonds,4,560,600],[Comon Stacks,1,360,600],[Total Assets,6,181,400],[Liablisties,206 san],[Fiduciary Wet Position Restricted for Pensions,55,281,600]]
During the year ended June 30, 2024, the following transactions occurred:
The interest receivable on investments was collected in cash.
Member coneributions in the amount of
$270,000
were received in cash. The clys General Fund aliso contributed
$810,000
in cash.
Annuity benefits of
$728,000
and disability benefis of
$201,000
were recorded as liabities.
Accounts payable and accrued expenses in the amount of
$990,000
were paid in cash.
Interest income of
$2.35,000
and dividends in the amount of
$40,000
were received in cash. In addion, bond interest income of
$62.000
was accrued at year-end.
Refunds of
$68,000
were made in cash to terminated, nonvested participants.
Common stocks, cerried at a fair value of
$500,000
, were sold for
$475,000
. That
$475,000
, plus an additional
$305,000
, was invested in stocks.
At year-end, it was determined that the fair value of stocks held by the pethion plan had decreased by
$36,000
; the fair value of bonds had increased by
$33,000
.
Nominal accounts for the year were closed.
Dequired:
4. Record the transactions on the books of the Employees' Retirement Fund.
b. Prepare a Statement of Changes in Fiduclary Net Position for the Employees' Retirement Fund for the year ended June 30, 2024.
c. Prepare a Statement of Fiduciary Net Position for the Employees' Retremens Fund as of June 30, 2024.