1) On July 1, 2019, the City of Corfu received a gift of debt securities of XYZ Company with a nominal (par) value of $1,500,000. Income is to be used to make awards for civic achievements. As of the date of the gift, the securities had a market value of $1,563,000. Included in this amount is accrued interest of $18,750. The bonds carried an annual interest rate of 5%, payable semiannually on April 1 and October 1. During the fiscal year ended June 30, 2020, the following transactions took place:

1. The gift was received.
2. On October 1, $37,500 in interest was received.
3. On April 1, $37,500 in interest was received.
4. On April 1, immediately after the receipt of interest, the XYZ bonds were sold for $1,558,000. The proceeds were invested in ABC bonds, which pay interest semiannually on April 1 and October 1. The bonds were purchased at par value.
5. On June 30, 2020, accrued interest of $19,475 on the ABC bonds was recognized.
6. On June 30, 2020, awards were made in the amount of $60,000.
7. As of June 30, 2020, the fair value of the fair value of the ABC bonds was $1,560,000, exclusive of accrued interest.

Required:

A. Record the above transactions on the books of the City of Corfu Private-Purpose Trust Fund.

B. Make a Statement of Changes in Fiduciary Net Position for the City of Corfu Private-Purpose Trust Fund for the year ended June 30, 2020.

2) The City of Greystone maintains its books so as to prepare fund accounting statements and prepares worksheet adjustments in order to prepare government-wide statements. You are to prepare, in journal form, worksheet adjustments for each of the following situations:

1. The City levied property taxes for the current fiscal year in the amount of $8,000,000. At year-end, $720,000 of the taxes had not been collected. It was estimated that $330,000 of that amount would be collected during the 60 days after the end of the fiscal year and that $360,000 would be collected after that time and the balance would be uncollectible. The City had recognized the maximum of property taxes allowable under modified accrual accounting.
2. $255,000 of property taxes had been deferred at the end of the previous year and was recognized under modified accrual as revenue in the current year.
3. In addition to the expenditures reported under modified accrual accounting, the city computed that an additional $104,000 should be accrued for compensated absences.
4. In the Statement of Revenues, Expenditures, and Changes in Fund Balances, General Fund transfers out included $600,000 to a debt service fund and $270,000 to a special revenue fund. General Fund transfers in included $750,000 from an enterprise fund.