On July $1,2019,$ the City of Belvedere accepted a gift of cash in the amount of $$3,280,000$ from a number of individuals and

foundations and signed an agreement to establish a private$-$purpose trust. The $$3,280,000$ 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,$$$2,196,000$ in $xYZ$ Company bonds were purchased at par plus accrued interest $($$$36,600).$ The bonds pay an annual

rate of $5$ percent interest semiannually on April $1$ and October $1.$

On August $2,$ $$909,000$ 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 $($$$54,900)$ 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 $$921,000.$ On the same day, DEF Company stock was purchased for $$972,000.$

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 $$85,000.$

Administrative expenses were recorded and paid in the amount of $$6,200.$

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 $$2,197,000.$ The fair value

of the DEF stock was determined to be $$968,000.$

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.

Complete this question by entering your answers in the tabs below.

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

Fund. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

Journal entry worksheet

On October $1,$ the first semiannual interest payment $($$$54,900)$ 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.

Note: Enter debits before credits. Prepare a Statement of Changes in Fiduciary Net Position for the Belvedere Community T

CITY OF BELVEDERE

Statement of Changes in Fiduciary Net Position

Community Trust Fund

For the Year Ended June $30,2020$ Prepare a Statement of Fiduciary Net Position.