Exam 7: Fiduciary Funds, Interfund Transactions

The City of Richmond maintains a Public Employee Retirement Trust Fund for its public safety employees. During the year ended June 30, 2017, the following transactions occurred: 1. The City contributed $\$ 1,200,000$ in cash to the plarl. Employee members contributed arn additional $\$ 1,200,000$ . 2. Arnuity benefits in the arnount of $\$ 255,000$ were recorded as liabilities. 3. Arruity benefits, previously recorded as liabilities, were paid in cash in the arnownt of $\$ 207,000$ . 4. Irvestment income received in cash arnounted to $\$ 102,000$ . In addition, $\$ 16,000$ in interest receivable was accrued at year-end. 5. Additional irvestrnents in the arnount of $\$ 2,100,000$ were purchased. 6. The market value of irvestrnents decreased by $\$ 9,100$ . 7. Norminal accourts for the year were closed. Required: Prepare journal entries for the above transactions on the books of the City of Richmond Public Safety Employee Retirement Trust Fund.

Onondaga 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 2017, the following taxes were levied: 1. $9,000,000 in property taxes were levied for the General Fund, of which 2% are deemed to be uncollectible. 2. $5,830,000 in property taxes were levied for the school district. "3. $5,410,000 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 90% of the levy for each fund. The Onondaga County General Fund charges 1.5% 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."

The tax agency fund of Orange County collected $9,000,000 for a school district, $4,000,000 for the county General Fund, and $8,000,000 for a municipality located in the County. County General Fund employees handle the collections, and a 2.5 percent collection fee is charged all units except the county. The total amount of revenue recognized by the county General Fund would be:

Which of the following statements is not correct with respect to investment trust funds?

Investments in a private-purpose trust fund should generally be reported at fair market value.

Which of the following is true regarding agency funds?

Which of the following is true regarding fiduciary funds?

GASB requires that endowments report investments at fair value unless the investments are in real estate

Which of the following statements is not correct with respect to defined benefit plans?