Reference no: EM131703481
Question: (Journal entries for three Agency Funds and a trial balance for each fund) Assume that the Town of Boonsville maintains an Agency Fund for its employees' insurance withholdings, another for its employees' income tax withholdings, and a third for its employees' pension contributions. The following are selected transactions incurred during calendar year 2012 that are related to these funds. Prepare the journal entries necessary to record these transactions on the books of the Employees' Insurance Agency Fund, the Employees' Income Tax Agency Fund, and the Employees' Pension Agency Fund. Also, prepare a trial balance for each fund as of December 31, 2012.
1. The town recorded its monthly payroll; salaries totaled $350,000. The withholdings were as follows: $70,000 for employees' income taxes, $30,000 for employees' insurance, and $15,000 for employees' pension contributions. The General Fund paid the appropriate amount to each Agency Fund.
2. The Employees' Insurance Agency Fund made a payment of $25,000 to the various insurance companies providing insurance coverage to the employees.
3. The town recorded its monthly payroll; salaries totaled $375,000. The withholdings were as follows: $75,000 for employees' income taxes, $20,000 for employees' insurance, and $18,000 for employees' pension contributions. The General Fund paid the appropriate amount to each Agency Fund.
4. The town recorded its monthly payroll; salaries totaled $350,000. The withholdings were as follows: $70,000 for employees' income taxes, $30,000 for employees' insurance, and $15,000 for employees' pension contributions. The General Fund paid the appropriate amounts to each Agency Fund.
5. The appropriate Agency Funds made a payment of $215,000 to the U.S. government and $48,000 to the Pension Trust Fund.
6. The town recorded its monthly payroll; salaries totaled $375,000. The withholdings were as follows: $75,000 for employees' income taxes, $20,000 for employees' insurance, and $18,000 for employees' pension contributions. The General Fund paid the appropriate amounts to each Agency Fund.