Journal entries for a Private-Purpose Trust Fund

Record the following journal entries in the Childrens Book Fund, a citys Private-Purpose Trust Fund that supplies books for children in nongovernmental nonprofit womens shelters. 1. A citizen establishes a trust fund, which is a fiduciary component unit of the city, with a $600,000 donation. The trust specified that this money was to be used to acquire childrens books for local nonprofit womens shelters. 2. The fund invested $504,000 in CDs. 3. Books costing $54,000 were acquired. 4. Interest income of $24,000 was received in cash from the CDs. 5. The accounts were closed for the year. Prepare journal entries for the above listed transactions and events. If an entry affects more than one debit or credit account, enter the accounts in order of magnitude (largest to smallest balances), debits first.

	Account	Debit	Credit
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	1. To record establishment of trust fund
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	2. To record investment in CDs.
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	3. To record purchase of books.
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	4. To record interest on CDs.
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	5. To close accounts for the year.