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ity of Belvedere accepted a gift of cash in the 6. On July 1, 2016, the of $3.200,000 from a number of individuals and foundatio

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ity of Belvedere accepted a gift of cash in the 6. On July 1, 2016, the of $3.200,000 from a number of individuals and foundatio agreement to establish a private-purpose trust. The S3.200,000 an an the trust by a Board con- greement provides tional gifts are to be invested and retained as principal. Incomefron add s to be distributed to community nonprofit groups as directed sisting of city officials and other community leaders. The a that any increas held in trust; if the investments fall below the gift amounts to be withheld until the principal amount is re-established. a. The following events and transactions occurred during the fiscal es in the market value of the principal investments are to then earnings are year e June 30, 2017. Record them in the Belvedere Community Trust Fund. 1. On July 1, the original gift of cash was received. 2. On August 1, $2,200,000 in XYZ Company bonds were purchased at par plus accrued interest (SI8.333). The bonds pay an annual rate of 5 percent interest semiannually on April 1 and October 3. On August 2, $900,000 in ABC Company common stock was pur- chased. ABC normally declares and pays dividends semiannually, on January 31 and July 31, 4. On October 1, the first semiannual interest payment ($55,000) was received from XYZ Company. Note that part of this is for accrued interest due at the time of purchase; the remaining part is an addition 5. On January 31, a cash dividend was received from ABC Company in 6. On March 1, the ABC stock was sold for $921,000. On the same day 7. On April 1, the second semiannual interest payment was received from 8. During the month of June, distributions were approved by the Board 9. Administrative expenses were recorded and paid in the amount of that may be used for distribution. the amount of $25,000. DEF Company stock was purchased for $965.000. XYZ Company and paid in cash in the amount of $82,500 $5,500. 10. An accrual for interest on the XYZ bonds was made as of June 30, 2017 11. As of June 30, 2017, the fair value of the XYZ bonds, exclusive of accrued interest, was determined to be $2,203,000. The fair value of the DEF stock was determined to be $961,000. 12. Closing entries were prepared. b. Prepare, in good form, (1) a Statement of Changes in Fiduciary Net Position for the Belvedere Community Trust Fund and (2) a Statement of Fiduciary Net Position

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