During 2020, a citizen donated $300,000 to the Village of Lakeview. The donor stipulated that the gift be invested permanently and that the earnings from the gift be used to train firefighters in the most modern techniques to fight fires. During 2020, the Villages finance director invested all $300,000 into various common stock and U.S treasury bill investments. During 2020, interest income earned from U.S. Treasury bills amounted to $7,000, and dividend income from equity investments amounted to $8,000. $14,000 of the income was received in cash, while the remaining $1,000 was accrued interest income at December 31, 2020. The permanent fund transferred $12,000 of the earnings to the general fund to train firefighters. At December 31, 2020, the investments in the fund had a market value of $321,000.

Required:

1. Prepare, in good form, the statement of revenues, expenditures, and changes in fund balance for the permanent fund for the year ended December 31, 2020.
2. Prepare the fund balance section of the balance sheet for the permanent fund at December 31, 2020.