(Journal entries for a Pension Trust Fund)

Moody Village maintains a Pension Trust Fund for its employees. At the start of the year, the Fund holds cash of $150,000 and investments that have a fair value of $4,000,000 .

The Fund has the following transactions. Prepare entries to record them in the Fund's accounts

a. Bills the General Fund $200,000 for the required annual contribution. The pension plan does not require contributions from the employees
b. Receives payment of $200,000 from the General Fund
c. Receives interest and dividend income of $150,000 in cash on its investment portfolio
d. Receives $215,000 from selling investments carried on the books at $200,000
e. Makes new investments totaling $275,000
f. Pays annuity benefits of $325,000 to retirees or their spouses
g. Pays administrative expenses of $100,000 in cash
h. The investments held by the Fund have a fair value of $4,100,000 at year-end.

a. Due from General Fund 200,000
Additions - pension contributions - employer 200,000

b. Cash 200,000
Due from General Fund 200,000

c. Cash 150,000
Additions - investment interest and dividends 150,000

d. Cash 215,000
Investments 200,000
Additions - net appreciation in fair value of investments 15,000

e. Investments 275,000
Cash 275,000

f. Deductions - retirement annuities 325,000
Cash 325,000

g. Deductions - administrative expenses 100,000
Cash 100,000

h. Investments 25,000
Additions - net appreciation in fair value of investments 25,000

Note - The net appreciation in fair value of investments in entry h. is the difference between the carrying value of investments before revaluation ($4,075,000) and the new fair value ($4,100,000). The carrying value before revaluation is the opening carrying value ($4,000,000) and the changes resulting from transactions d. and e.