On January 1,Forrester County Is Holding Investments for Tinsel Town

question 1

Essay

On January 1,Forrester County is holding investments for Tinsel Town valued at $500,000 in an investment pool,accounted for in an investment trust fund.On January 1,Valley School District invests $1,500,000 in the pool.Earnings on pooled investments for the six months ended June 30 totaling $300,000 were received in cash.

1)What percentage interest in the pool is held by the town and the school district?
2)(a)Show the entry in the Investment Trust Fund to record the School District's investment in the pool.
(b)Show the entry in the Investment Trust Fund to summarize the collection of interest for the six-month period.
(c)Show the entry in the Investment Trust Fund to record the distribution of the interest earned on pooled investments,assuming that the interest will be reinvested by the town and school district.

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Definitions:

Agency Terminates

The conclusion or end of an agency relationship between a principal and agent, which can occur through mutual agreement, completion of the task, or by other legal means.

Disclose Information

The act of making information known or revealed, often in a formal or official capacity.

Subjective Test

A method of assessment where outcomes are influenced by the perspectives, interpretations, or judgments of the evaluator.

Agency Relationship

A relationship in which one party (the agent) agrees to act for or on behalf of another party (the principal), typically in business transactions.