Cummings City has a permanent fund that receives endowment gifts for which earnings are then transferred to be used by the special revenue library fund. The permanent fund has the following transactions:

1. A donor gives $2,000,000 as an endowment gift to the permanent fund so that the earnings can be used to purchase special books on governmental and nonprofit accounting topics.

2. The permanent fund receives interest income from its investments of $90,000.

3. The permanent fund transfers $500,000 to the special revenue fund.

Record each of the journal entries in the permanent fund as well as any other affected funds.