Journal entries and financial statements for a Private$-$Purpose Trust Fund

The following events and transactions occurred for the College Scholarship Private$-$Purpose Trust Fund,

a fiduciary component unit of the City of Rocky Basin.

A prominent citizen funds the trust for the College Scholarship Fund with $$4,500,000$ from her estate

based on the provisions of her will. The City of Rocky Basin controls the trust assets. The terms of the will

require the trust to maintain the principal intact; investment income is to be used to provide college scholarships

for deserving graduates of Rocky Basin High School, which is independent from the City of Rocky Basin.

The entire gift is invested in certificates of deposit $($CDs$).$

Interest income of $$225,000$ was received in cash.

That $$225,000$ was reinvested in short$-$term CDs$.$

The short$-$term CDs matured, yielding interest income of $$2,250.$

$6.$ Interest income of $$252,000$ was received in cash.

Scholarships totaling $$146,250$ were paid to eligible students based on the provisions of the will that

established the trust.

Interest income of $$5,175$ was accrued at the end of $2022.$

The General Fund charged the Scholarship Fund $$6,750$:$$4,500$ for investment costs and

$$2,250$ in accounting costs for the fund. The amounts were unpaid at fiscal year$-$end.