Exam 7: Fiduciary Trustfunds

The required financial statements for agency funds includes only a Statement of Fiduciary Net Assets.

An employee enrolls in a pension plan that will pay out 3% of the employee's average salary for the last 3 years for each year of service that the employee worked.What type of pension plan does the employee have?

The Accrual Basis and Current Resource Measurement Focus are used for Private-Purpose,Investment Trust and Pension Funds.

Which of the following is true regarding fiduciary funds?

Governments that contribute to single employer and agent multiple-employer plans compute annual pension cost as the _________?

Pension Funds report the government's pension expense for the year.

On July 1,2013,the City of Corfu received a gift of debt securities of XYZ Company with a nominal (par)value of $1,600,000.Income is to be used to make awards for civic achievements.As of the date of the gift,the securities had a market value of $1,658,000,including accrued interest of $24,000.The bonds carried an annual interest rate of 6%,payable semiannually on April 1 and October 1.During the fiscal year ended June 30,2014,the following transactions took place: 1.The gift was received. 2.On October 1,$48,000 in interest was received. 3.On April 1,$48,000 in interest was received. 4.On April 1,immediately after the receipt of interest,the XYZ bonds were sold for $1,630,000.The proceeds were invested in ABC bonds,which also carried a 6.4% annual interest rate,payable semiannually on April 1 and October 1.The bonds were purchased at par value. 5.On June 30,2014,accrued interest on the ABC bonds was recognized. 6.On June 30,2014,awards were made in the amount of $60,000. 7.As of June 30,2014,the fair value of the fair value of the ABC bonds was $1,640,000,exclusive of accrued interest. Required: A.Record the above transactions on the books of the City of Corfu Private-Purpose Trust Fund. B.Prepare a Statement of Changes in Fiduciary Net Assets for the City of Corfu Private-Purpose Trust Fund for the year ended June 30,2014.

Governments that contribute to single employer and agent multiple-employer plans compute annual pension cost as the net pension obligation.

Fiduciary funds are reported in the fund-basis and government-wide financial statements.

Fiduciary funds include agency funds,private-purpose trust funds,investment trust funds,and pension (or other employee benefit)trust funds.

A fund that exists when a government is the trustee for a defined benefit pension plan,or a defined contribution pension plan is a(n):

Investments in a private-purpose trust fund should generally be reported using:

A pension plan that is required to pay out only the amount that has been accumulated for each employee is a ________?

Clinton County maintains an investment trust fund for the investments of governments within its borders.All the investments had determinable fair values.Which of the following is true regarding investment trust funds and investments in general?

A fund that exists when the government is the sponsor of a multigovernment investment pool and accounts for the external portion of the trust assets is a(n):

A fund that is used to account for assets held by a government acting as agent for one or more other governments units or for individuals or private organizations is a(n):

Pension trust fund financial statements would be found in the Comprehensive Annual Financial Report of a governmental reporting entity:

For governmental-type funds,Statement 53 (reporting of derivatives)applies only to reporting at the government-wide level,not the fund-basis statements.

What are the four types of fiduciary funds and the function of each?

Jefferson County maintains a tax agency fund for use by the County Treasurer to record receivables,collections,and disbursements of all property tax collections to all units of government in the county.In the year 2014,the following taxes were levied: 1.$8,820,000 in property taxes were levied for the General Fund,of which 2% are deemed to be uncollectible.2.$4,830,000 in property taxes were levied for the school district.3.$4,410,000 in property taxes were levied for a village in the county. Required: A.Prepare the journal entries for each unit and the Agency Fund to record these levies. B.The agency fund then collected 92% of the levy for each fund.The Jefferson County General Fund charges 2.5% of collections as a fee for maintaining the agency fund. Prepare the journal entries for each unit and the Agency Fund to record these collections and fees.