On July $1,2019,$ the City of Belvedere accepted a gift of cash in the amount of $$3,230,000$ from a number of individuals and foundations and signed an agreement to establish a private$-$purpose trust. The $$3,230,000$ and any additional gifts are to be invested and retained as principal. Income from the trust is to be distributed to community nonprofit groups as directed by a Board consisting of city officials and other community leaders. The agreement provides that any increases in the market value of the principal investments are to be held in trust; if the investments fall below the gift amounts, then earnings are to be withheld until the principal amount is re$-$established.

The following events and transactions occurred during the fiscal year ended June $30,2020.$ Record them in the Belvedere Community Trust Fund:

On July $1,$ the original gift of cash was received.

On August $1,$ $$2,191,000$ in XYZ Company bonds were purchased at par plus accrued interest $($$$36,517).$ The bonds pay an annual rate of $5$ percent interest semiannually on April $1$ and October $1.$

On August $2,$ $$904,000$ in ABC Company common stock was purchased. ABC normally declares and pays dividends semiannually, on January $31$ and July $31.$

On October $1,$ the first semiannual interest payment $($$$54,775)$ was received from XYZ Company. Note that part of this is for accrued interest due at the time of purchase; the remaining part is an addition that may be used for distribution.

On January $31,$ a cash dividend was received from ABC Company in the amount of $$25,000.$

On March $1,$ the ABC stock was sold for $$921,000.$ On the same day, DEF Company stock was purchased for $$968,000.$

On April $1,$ the second semiannual interest payment was received from XYZ Company.

During the month of June, distributions were approved by the Board and paid in cash in the amount of $$82,800.$

Administrative expenses were recorded and paid in the amount of $$5,800.$

An accrual for interest on the XYZ bonds was made as of June $30,2020.$

As of June $30,2020,$ the fair value of the XYZ bonds, exclusive of accrued interest, was determined to be $$2,193,000.$ The fair value of the DEF stock was determined to be $$960,000.$

Closing entries were prepared.

Required:

a$.$ The above events and transactions occurred during the fiscal year ended June $30,2020.$ Record them in the Belvedere Community Trust Fund.

b$.$ Prepare $(1)$ a Statement of Changes in Fiduciary Net Position for the Belvedere Community Trust Fund and $(2)$ a Statement of Fiduciary Net Position.

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