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Question: (Journal entries for a Pension Trust Fund) The Pension Trust Fund maintained by the City of Linden had the following transactions during 2012. Record each transaction in the Pension Trust Fund. Ignore any other funds that may be involved in a transaction.
1. Contributions of $600,000 were received from General Fund employees, and the General Fund contributed its share of $100,000.
2. The fund paid $500 for investment management fees.
3. Investments held by the fund increased in value by $3,500.
4. Depreciation on fund capital assets totaled $800.
5. Retirement benefits of $7,700 were paid to retirees.
6. Interest of $2,500 and dividends of $1,400 were received from investments.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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