Investment Trust Fund. 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 2013. At the date of the creation of the pool, February 15, 2016, the fair value of the investments of each pool participant was as follows:Investments12/31/162/15/17City of Albertville General Fund$ 890,000$900,000Albertville Schools$4,200,000$4,230,000Richwood Township$3,890,000$3,870,000 Total$8,980,000$9,000,000Using this information:Prepare the journal entries that should be made by the City of Albertville, Albertville Schools, and Richwood Township on February 15 to record their participation in the investment pool. (Entries for the investment pool trust fund will be made later.)Prepare the journal entries to be made in the accounts of the investment pool trust fund to record the following transactions of the first year of operations:Record the investments transferred to the pool; assume that the investments of the city's General Fund were in U.S. Treasury notes and the investments of both the schools and the township were in certificates of deposit (CDs).On June 15, the Richwood Township decided to withdraw $3,010,000 for a capital projects payment. At the date of the withdrawal, the fair value of the Treasury notes has increased by $30,000. Assume that the trust fund is able to redeem the CDs necessary to complete the withdrawal without a penalty but does not receive interest on the funds.On September 15, interest on Treasury notes in the amount of $50,000 was collected.Interest on CDs accrued at year-end amounted to $28,000.At the end of the year, undistributed earnings were allocated to the investment pool participants. Assume that there were no additional changes in the fair value of investments after the Richwood Township withdrawal. Round the amount of the distribution to each fund or participant to the nearest dollar.Record the June 15 increase in each of the participant's funds.Record the change in each participant's Equity in Pooled Investment account due to the September 15 treasury interest and December 31 CD interest accrual.Explain how the investment trust fund would report the General Fund's interest in the investment pool and the Albertville School's interest in the investment pool.

Assignment: Business LetterIn this Assignment, you will prepare a business letter to share your advice to a client. You will explain complex financial data and discuss the cause and effect of select accounting transactions has on cash balances. This Assignment will assess your knowledge based on the following outcome:Read the following scenario:The Chief Financial Officer (CFO) of a company is asking for your advice. The CFO explains sales are increasing but there is a constant matter of not having enough cash to meet payroll or pay vendors within 30 days. Prepare a business letter to the CFO to explain,1. Why cash can go down even when sales are up; refer to “receivables.”2. Which three accounts should the CFO review each day and why? Focus on short-term balance sheet accounts, i.e., “receivables and payables.” The following is a general structure for informational business letters; however, this is not a template, and modifications may be necessary for composing this type of letter. An example is attached.•Letterhead. Most companies have stationary that has the company logo and contact information at the top. Generally, readers expect to see business letters on letterhead because it adds to the company’s credibility; so if this is available, it is advisable to use it f or all business correspondence to outside customers or clients. It is generally not needed for internal letters or memos.•Opening information. This includes a date and the name and address of the customer.•Introductory paragraph. For an informational business letter, the introduction can go several ways. It can introduce the product or service or it can establish a problem for which the reader will want to know a solution.•Body paragraphs. Body paragraphs will follow the lead made in the introduction. This is where you give details about the product or service and explain how it will solve a problem you think the reader faces.•Closing paragraph. Here is where you might give your strongest point or last pitch and provide contact information.•Complementary close. The letter should end with a close like Sincerely or Best or Respectfully.•Signature block. Sign your name and include your title.•Format of business letters. Business letters are written single- spaced and generally in a block format, which means that everything is aligned to the left margin. In block format, paragraphs are generally not indented, so double-space between paragraphs.