Question

In: Accounting

On February 10, Coop City Council agreed to pool the investments of its General Fund with...

On February 10, Coop City Council agreed to pool the investments of its General Fund with Coop Schools and Cardinal Township in an investment pool managed by Coop City. Coop City creates an Investment Trust Fund to account for this investment pool. Please record the following in the Coop City Trust Fund and General Fund.

1. Coop City Trust Fund received investments with a market value of $890,000 from the Coop City General Fund, $4,200,000 from Coop Schools, and $3,890,000 from Cardinal Township.

2. Investments grew in value by $600,000. $59,465 of this is attributable to the general fund, $280,624 is attributable to Coop Schools, and $259,911 is attributable to Cardinal Township.

3. Coop Schools needed cash to pay for a playground expansion. At Coop School’s request, the trust fund sold $700,000 recorded value of investments for $710,000, then disbursed the $710,000 cash to Coop Schools.

Solutions

Expert Solution

Coop City Trust Fund
Sr Particulars Amount Amount Sr Particulars Amount Amount
1 To Investment ledger By Cash ledger
Coop city General fund    8,90,000 Coop city General fund    8,90,000
Coop Schools 42,00,000 Coop Schools 42,00,000
Cardinal Township 38,90,000 89,80,000 Cardinal Township 38,90,000 89,80,000
(Investment amounts received) (Investment amounts received)
2 To Investment ledger
Coop city General fund      59,465
Coop Schools 2,80,624
Cardinal Township 2,59,911    6,00,000
(Value Gain in Investments)
3 To Investment ledger By Investment ledger
Coop city General fund             -   Coop city General fund             -  
Coop Schools      10,000 Coop Schools 7,10,000
Cardinal Township             -          10,000 Cardinal Township             -      7,10,000
(Gain on Sale of Investment) (Cash payout)
Coop city General fund
Sr Particulars Amount Amount Sr Particulars Amount Amount
   1 To Cash ledger By Investment ledger
Coop City Trust Fund 8,90,000 Coop City Trust Fund 8,90,000

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