PROBLEM 19-7Investment PoolThree funds of the Leukemia Foundation, a nonprofit welfare organization, began an investment pool...

PROBLEM 19-7Investment PoolThree funds of the Leukemia Foundation, a nonprofit welfare organization, began an investment pool on January 1, 2016. The costs and fair market values on this date were as follows:MarketCostValueRestricted fund$55,000$70,000Lambert endowment fund215,000210,000Plant fund200,000220,000Total$470,000$500,000During 2016 the investment pool reinvested $20,000 in realized gains and received interest of $15,000 and dividends of $10,000. Interest and dividend income was distributed to the respective funds. The Plant Fund withdrew from the investment pool on December 31, 2016, when the total current market value was $540,000. It distributed securities in the amount of its percentage share. On January 3, 2017, the Fargot Annuity Fund entered the investment pool with investments costing$100,000 and having a current market value of $117,600. During 2017 the pool received interest of $25,000 and dividends of $15,000, which were distributed to the participating funds. Realized gains of $30,000 were rein-vested in the pool.

Required:

A. Calculate the equity percentages of the contributing funds in the investment pool at January 1, 2016, and January 3, 2017.

B.Using the format shown below, prepare entries necessary on the records of the funds that contributed securities to the investment pool to account for the earnings of the investment pool in 2016 and 2017.DateFundJournal EntryLO11

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ekkarill92 answered 2 years ago

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