In his will, Andrew Baker provided for the establishment of a trust that will include the bulk of his estate assets. At the time of his death, his net assets had a market value of $430,000 consisting of $75,000 in cash, $125,000 of U.S. Treasury bonds including accrued interest, and the remainder in various securities. Income beneficiaries of the trust will be the same as the income beneficiaries of the estate. You will act as a trustee.

Required: Prepare journal entries on the trust books for the following transactions: (1) The assets are accepted by you as trustee. (2) Bond interest of $35,000 is received, of which $10,000 was earned to the date of transfer to the trustee. Dividends of $20,000 are also received. (3) The following cash distributions were made by the trustee: To income beneficiaries $25,000 To trustee to cover administrative fees (of which 2/3 is chargeable against the principal and 1/3 against income) 12,000 Total distribution $37,000