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Question - The Albertville City Council decided to pool the investments of its General Fund with Albertville Schools and Richwood Township in an investment pool to be managed by the city. Each of the pool participants had reported its investments at fair value as of the end of 2019. At the date of the creation of the pool, February 15, 2020, the fair value of the investments of each pool participant was as follows:
Investments
12/31/19
2/15/20
City of Albertville General Fund
$895,500
$927,500
Albertville Schools
4,211,000
4,359,250
Richwood Township
4,000,000
3,988,250
Total
$9,106,500
Required - Prepare the journal entries to be made in the accounts of the investment pool trust fund to record the following transactions for the first year of operations.
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