When a Cash and Investment Pool of a Certain City

question 51

Multiple Choice

When a cash and investment pool of a certain city was established, the debt service fund transferred investments to the pool having a cost of $3,000,000 but a current fair market value of $3,100,000. To record this transfer, a single journal entry was made by the debt service fund that included which of the following?

• A) A debit to Equity in Pooled Cash and Investments in the amount of $3,000,000.
• B) A credit to Revenues-Change in Fair Value of Investments in the amount of $100,000.
• C) A debit to Investments in the amount of $3,000,000.
• D) A credit to Investments in the amount of $3,100,000.