(Journal entries and financial statements for an Investment Trust Fund)

Dryrock County operates an Investment Trust Fund for cities located in the county. The following entries are associated with the fund during 2004:

1. The cities of Bushville and Clintonville contributed assets, $\$ 75,000$ and $\$ 50,000$, respectively.

2. The entire amount received in part (1) was invested: $\$ 65,000$ in certificates of deposit (CDs) and $\$ 60,000$ in Treasury notes.

3. Interest income of $\$ 37,500$ was received.

4. CDs totaling $\$ 40,000$ and Treasury notes totaling $\$ 30,000$ matured. Interest income of $\$ 1,000$ was also received.

5. The money received in part (4) was reinvested in CDs.

6. Additional interest income was received, $\$ 17,500$.

7. The General Fund charged the Investment Trust Fund $\$ 500$ for administrative expenses. This amount was paid in cash.

8. The income of $\$ 50,000$ was distributed to the participating cities according to the trust agreement (Bushville $60 \%$, Clintonville $40 \%$ ).

Required: 1. Prepare journal entries to record the 2004 entries in the Investment Trust Fund.

2. Prepare a statement of changes in fiduciary net assets for the fund for 2004.

3. Prepare a statement of fiduciary net assets for the fund as of December 31, 2004 .