(Journal entries and financial statements for a Private Purpose Trust Fund)

Landslot City received a gift from J. R. Landslot. Landslot wished to provide operating resources for a parade in her husband's honor. The gift was $\$ 2$ million. To guarantee proper use of the money, Landslot made the donation in the form of a trust-a private purpose trust. The following events took place during 2004:

1. Landslot gave Landslot City $\$ 2$ million with the stipulations mentioned previously.

2. The city paid $\$ 500,000$ to a local advertising agency to publicize the parade.

3. The city sponsored a float in the parade. The total cost of building the float was $\$ 200,000$. Based on the trust agreement, this expenditure from the gift is acceptable.

4. The police department spent $\$ 100,000$ for extra police to control the traffic and crowds at the parade. The trust reimbursed the department for these costs.

5. The sanitation department incurred $\$ 75,000$ of costs in cleaning up after the parade. The trust reimbursed the department for these costs.

6. The city paid $\$ 300,000$ to various school bands and marching groups to participate in the parade.

7. A "kick-off dinner" was held 2 months before the parade to start the parade season. The cost of the dinner was $\$ 123,000$.

8. An office was established to oversee the parade preparations. The total cost of running the office was $\$ 35,000$, of which $\$ 25,000$ was paid in cash.

9. The cost of permits and other legal obligations totaled $\$ 500$.

10. The remaining cash, except for $\$ 10,000$, was invested in certificates of deposit. According to the trust agreement, this money would be invested and used to provide for the 2005 parade.

Required: 1. Record these entries in the Landslot Parade Fund-a Private Purpose Trust Fund.

2. Prepare a statement of changes in fiduciary net assets for 2004 and a statement of fiduciary net assets as of December 31, 2004, for the fund.