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. 1. A prominent citizen funds the trust for the College Scholarship Fund with $1,000,000 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. 2. The entire gift is invested in certificates of deposit (CDs). 3. Interest income of $50,000 was received in cash. 4. That $50,000 was reinvested in short-term CDs. 5. The short-term CDs matured yielding interest income of $500. 6. Interest income of $56,000 was received in cash. 7. Scholarships totaling $32,500 were paid to eligible students based on the provisions of the will that established the trust 8. Interest income of $1,150 was accrued at the end of 2022. 9. The General Fund charged the Scholarship Fund $1,500 : $1,000 for investment costs and $500 in accounting costs for the fund. The amounts were unpaid at fiscal year-end. a) Prepare the journal entries necessary to record the transactions and events in 2022 for the College Scholarship Private-Purpose Trust Fund a) Prepare the journal entries necessary to record the transactions and events in 2022 for the College Scholarship Private-Purpose Trust Fund Account Debit Credit Cash 0 Net position restricted for scholarships for others 0 To record funding of College Scholarship Fund Cash 0 Additions-interest 0 To record purchase of certificates of deposit. 0 0 0 0 To record interest income received. 0 0 0 0 To record purchase of short-term CDs 0 0 To record redemption of short-term CDs. To record operating costs b) Prepare a statement of net changes in fiduciary fund net position for the fiscal year ending December 31, 2022 for the fund. Enter accounts in the addition and deduction sections in order of magnitude (largest to smallest). City of Rocky Basin Private-Purpose Trust Fund College Scholarship Fund Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2022 Additions: S 0 Investment earnings $ s 0 ++ 1.000 0 Net investment income Total additions Deductions: 0 1 O O oo Total deductions 41 0 0 0 0 Net position-beginning of year Net position-end of year S c) Prepare a statement of fiduciary net position as of December 31, 2022. City of Rocky Basin Private-Purpose Trust Fund College Scholarship Fund Statement of Fiduciary Net Position December 31, 2022 Assets 0 4 4 4 1.150 0 0 Total assets Liabilities: 0 0 Net position restricted for scholarships for others $ 0 a) Prepare the 2022 closing entry for the fund. Account Debit Credit 0 0 0 O 0 0