On July $1,2023,$ the City of Belvedere accepted a gift of cash in the amount of $$3,330,000$ from a number of individuals and

foundations and signed an agreement to establish a private$-$purpose trust. The $$3,330,000$ and any additional gifts are to be invested

and retained as principal. Income from the trust is to be distributed to nonprofit community 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 $30,2024.$ Record them in the Belvedere Community

Trust Fund:

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

B$.$ On August $1,$$$2,206,000$ in XYZ Company bonds were purchased at par plus accrued interest $($$$36,767).$ The bonds pay an annual

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

C$.$ On August $2,$ $$900,000$ in ABC $.$ Company common stock was purchased. ABC normally declares and pays dividends semiannually,

on January $31$ and July $31.$

D$.$ On October $1,$ the first semiannual interest payment $($$$55,150)$ 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.

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

F$.$ On March $1,$ the ABC stock was sold for $$921,000.$ On the same day, DEF Company stock was purchased for $$977,000.$

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

H$.$ During the month of June, distributions were approved by the Board and paid in cash in the amount of $$90,000.$

I. Administrative expenses were recorded and paid in the amount of $$6,700.$

J$.$ An accrual for interest on the XYZ bonds was made as of June $30,2024.$

K$.$ As of June $30,2024,$ the fair value of the XYZ bonds, exclusive of accrued interest, was determined to be $$2,207,000.$ The fair

value of the DEF stock was determined to be $$973,000.$

L$.$ An additional $$500$ of administrative expenses $($payable$)$ were incurred and will be paid in the following year.

M$.$ Closing entries were prepared.

Required:

a$.$ Prepare journal entries for the above transactions and events.

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