On 1-1-01, the City of Smallville received $100,000 from a citizen, who specifies the principal amount should remain intact. Earnings on the principal are to be used for park beautification projects and upkeep.

Record the following events in the appropriate governmental funds.Use a separate sheet for each general ledger.If using multiple funds, identify the type of fund at the top of your general ledger.You do not need to close the accounts.

a.

The deposit is made of the cash received.

b.

The cash is invested in marketable securities.

c.

Total interest accrued on investments for the year is $8,000; A liability is established in the permanent fund for what is owed to special revenue fund.

d.

The interest is collected and transferred to the appropriate special revenue fund.

e.

Park Operating expenses are $2,500; $5,500 is spent on new park benches.