On July $1,2023,$ the City of Belvedere accepted a gift of cash in the amount of $$3,400,000$ from a number of individuals and foundations and signed an agreement to establish a private$-$purpose trust. The $$3,400,000$ 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:

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

On August $1,$ $$2,220,000$ in XYZ Company bonds were purchased at par plus accrued interest $($$$37,000).$ 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 $($$$55,500)$ 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 $$921,000.$ On the same day, DEF Company stock was purchased for $$984,000.$

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 $$97,000.$

Administrative expenses were recorded and paid in the amount of $$7,400.$

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

As of June $30,2024,$ the fair value of the XYZ bonds, exclusive of accrued interest, was determined to be $$2,221,000.$ The fair value of the DEF stock was determined to be $$980,000.$

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

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.

b$2.$ Prepare a Statement of Fiduciary Net Position.