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.
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