(Journal entries for a Private Purpose Trust Fund)

Record the following journal entries in the Children's Book Fund, a Private Purpose Trust Fund that supplies books for children in privately owned battered women's shelters.

1. A wealthy citizen donated $\$ 500,000$ to a Private Purpose Trust Fund. The trust specified that this money was to be used to acquire children's books for battered women's shelters.

2. The fund invested $\$ 420,000$ in certificates of deposit.

3. Books costing $\$ 45,000$ were acquired.

4. Income of $\$ 20,000$ was received in cash from the investments.

5. The accounts were closed for the year.