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g The Investment Trust Fund for Watson County had the following transactions and events during the calendar year 2022: 1. The cities of Turtle Creek and Pineview contributed $150,000 and $100,000 respectively, to an Investment Trust Fund operated by Watson County. 2. Investments totaling $187,500 were purchased. 3. Interest income from the investments during the year totaled $20,000. 4. The fund paid $3,750 to the county for investment management fees. 5. The investments increased in value by $7,500. 6. Total income of $25,000 was paid to the two cities. Prepare journal entries to record the transactions and events above for the Investment Trust Fund.

Sagot :

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The Journal Entries recording the transactions for Investment Trust Fund by Watson County are as follows:

Journal Entries for 2022:

1. Debit Cash $250,000

Credit Contributions, Turtle Creek $150,000

Credit Contributions, Pineview $100,000

To record the contributions by the two cities to the Investment Trust Fund.

2. Debit Investments $187,500

Credit Cash $187,500

To record the purchase of investments.

3. Debit Cash $20,000

Credit Interest Income from Investments $20,000

To record interest income received from investments during the year.

4. Debit Investment Management Fees (Watson County) $3,750

Credit Cash $3,750

To record the payment of management fees to the county.

5. Debit Investments $7,500

Credit Fair Value Gain $7,500

To record the increase in value of investments.

6. Debit Turtle Creek & Pineview Cities $25,000

Credit Cash $25,000

To record the payment of income to the two cities.

Data Analysis:

1. Cash $250,000 Contributions, Turtle Creek $150,000 Contributions, Pineview $100,000

2. Investments $187,500 Cash $187,500

3. Cash $20,000 Interest Income from Investments $20,000

4. Investment Management Fees (Watson County) $3,750 Cash $3,750

5. Investments $7,500 Fair Value Gain $7,500

6.  Turtle Creek & Pineview Cities $25,000 Cash $25,000

Thus, the journal entries above record the transactions and events that occurred for the Investment Trust Fund of Watson County for the two cities of Turtle Creek and Pineview for the year 2022.

Read more about recording Investment Trust Fund transactions at https://brainly.com/question/15088437

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