This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: (Journal Entries for an Investment Trust Fund) Smith County operates an external investment pool, ... (Read 58 times)

chads108

  • Hero Member
  • *****
  • Posts: 507
on: Jul 5, 2018
(Journal Entries for an Investment Trust Fund)
 
  Smith County operates an external investment pool, which invests idle cash on behalf of school districts within the county. Prepare journal entries to record the following transactions.
 
  a. The pool receives cash deposits from District 1 (100,000) and District 3 (300,000).
  b. The pool invests the 400,000 in certificates of deposit (CDs) maturing in three months.
  c. The CDs mature and the pool receives 402,000, which includes 2,000 interest.
  d. The pool remits the interest to Districts 1 and 3 in proportion to their investments.
  e. District 3 needs some cash. In accordance with District 3's request, the pool returns 250,000 cash to the District.
   f. The pool invests the remaining 150,000 in another CD.
   g. At year-end, interest earned but not received on the 150,000 CD, amounts to 1,000.

Question 2

Every controlling account must have its own
 a. revenue ledger
  b. general ledger
  c. subsidiary ledger
  d. journal


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bubulittle310@msn.cn

  • Sr. Member
  • ****
  • Posts: 281
Reply #1 on: Jul 5, 2018
Answer to Question 1

a. Cash 400,000
Additions  contributions from District 1 100,000
Additions  contributions from District 3 300,000

b. Investments - CDs 400,000
Cash 400,000

c. Cash 402,000
Investments - CDs 400,000
Additions - interest 2,000

d. Deductions - distributions to pool participants 2,000
Cash 2,000

e. Deductions - distributions to pool participants (District 3) 250,000
Cash 250,000

f. Investments - CDs 150,000
Cash 150,000

g. Interest receivable 1,000
Additions - interest 1,000

Answer to Question 2

c


chads108

  • Member
  • Posts: 507
Reply 2 on: Jul 5, 2018
Gracias!

upturnedfurball

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

An otoscope, used to visually examine the external auditory ear canal and tympanic membrane. An otoscope, used to visually examine the external auditory ear canal and tympanic membrane.
Range of Motion of the Hip Joint, Position of the Leg for Full External Rotation Range of Motion of the Hip Joint, Position of the Leg for Full External Rotation
External Occipital protuberance External Occipital protuberance
External Obliques External Obliques
External anatomy of the heart External anatomy of the heart
Positioning of external auditory canal for tympanic membrane visualization Positioning of external auditory canal for tympanic membrane visualization
Video: Integumentary Anatomy

For a complete list of videos, visit our video library