On July $1,2019,$ the Morgan County School District received a $$40,000$ gift from a local civic organization with the stipulation that, on June $30$ of each year, $$2,500$ plus any interest earnings on the unspent principal be awarded as a college scholarship to the high school graduate with the highest academic average. A private$-$purpose trust fund, the Civic Scholarship Fund, was created.

Required:

Record the following transactions on the books of the Civic Scholarship Fund:

On July $1,2019,$ the gift was received and immediately invested.

On June $30,2020,$ $$2,500$ of the principal was converted into cash. In addition, $$1,000$ of interest was received.

On June $30,$ the $$3,500$ was awarded to a student who had maintained a $4\mathrm{.}0$ grade point average throughout each of her four years.

The nominal accounts were closed.

Prepare a Statement of Changes in Fiduciary Net Position for the Civic Scholarship Fund for the year ended June $30,2020.$