On July 1, 2019, the City of Belvedere accepted a gift of cash in the amount of $3,380,000 from a number of individuals and foundations and signed an agreement to establish a private-purpose trust. The $3,380,000 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:

1. On July 1, the original gift of cash was received.
2. On August 1, $2,216,000 in XYZ Company bonds were purchased at par plus accrued interest ($36,933). The bonds pay an annual rate of 5 percent interest semiannually on April 1 and October 1.
3. On August 2, $907,000 in ABC Company common stock was purchased. ABC normally declares and pays dividends semiannually, on January 31 and July 31.
4. On October 1, the first semiannual interest payment ($55,400) 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.
5. On January 31, a cash dividend was received from ABC Company in the amount of $25,000.
6. On March 1, the ABC stock was sold for $921,000. On the same day, DEF Company stock was purchased for $982,000.
7. On April 1, the second semiannual interest payment was received from XYZ Company.
8. During the month of June, distributions were approved by the Board and paid in cash in the amount of $95,000.
9. Administrative expenses were recorded and paid in the amount of $7,200.
10. An accrual for interest on the XYZ bonds was made as of June 30, 2020.
11. As of June 30, 2020, the fair value of the XYZ bonds, exclusive of accrued interest, was determined to be $2,217,000. The fair value of the DEF stock was determined to be $978,000.
12. 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.

No	Transaction	General Journal	Debit	Credit
1	01	Cashselected answer correct	3,380,000selected answer correct	not attempted
		AdditionsContributionsselected answer correct	not attempted	3,380,000selected answer correct
2	02	Investment in XYZ Company Bondsselected answer correct	2,216,000selected answer correct	not attempted
		Accrued Interest Receivableselected answer correct	36,933selected answer correct	not attempted
		not attempted	not attempted	2,252,933selected answer correct
3	03	Investment in ABC Company Stockselected answer correct	907,000selected answer correct	not attempted
		Cashselected answer correct	not attempted	907,000selected answer correct
4	04	Cashselected answer correct	55,400selected answer correct	not attempted
		Accrued Interest Receivableselected answer correct	not attempted	36,933selected answer correct
		AdditionsInvestment EarningsInterestselected answer correct	not attempted	18,467selected answer correct
5	05	Cashselected answer correct	12,500selected answer incorrect	not attempted
		AdditionsInvestment EarningsDividendsselected answer correct	not attempted	12,500selected answer incorrect
6	6a	Cashselected answer correct	921,000selected answer correct	not attempted
		Investment in ABC Company Stockselected answer correct	not attempted	907,000selected answer correct
		AdditionsInvestment EarningsNet Increase(decrease) in Fair Value of Investmentsselected answer correct	not attempted	14,000selected answer correct
7	6b	Investment in DEF Company Stockselected answer correct	982,000selected answer correct	not attempted
		Cashselected answer correct	not attempted	982,000selected answer correct
8	07	Cashselected answer correct	55,400selected answer correct	not attempted
		AdditionsInvestment EarningsInterestselected answer correct	not attempted	55,400selected answer correct
9	08	DeductionsDistributions to Nonprofit Organizationsselected answer correct	95,000selected answer correct	not attempted
		Cashselected answer correct	not attempted	95,000selected answer correct
10	09	DeductionsAdministrative Expensesselected answer correct	7,200selected answer correct	not attempted
		Cashselected answer correct	not attempted	7,200selected answer correct
11	10	Accrued Interest Receivableselected answer correct	36,933selected answer incorrect	not attempted
		AdditionsInvestment EarningsInterestselected answer correct	not attempted	36,933selected answer incorrect
12	11	Investment in DEF Company Stockselected answer incorrect	not attempted	not attempted
		Investment in XYZ Company Bondsselected answer correct	not attempted	not attempted
		AdditionsInvestment EarningsNet Increase(decrease) in Fair Value of Investmentsselected answer incorrect	not attempted	not attempted
13	12	AdditionsContributionsselected answer correct	not attempted	not attempted
		AdditionsInvestment EarningsInterestselected answer correct	not attempted	not attempted
		AdditionsInvestment EarningsDividendsselected answer correct	not attempted	not attempted
		AdditionsInvestment EarningsNet Increase(decrease) in Fair Value of Investmentsselected answer correct	not attempted	not attempted
		DeductionsAdministrative Expensesselected answer correct	not attempted	not attempted
		DeductionsDistributions to Nonprofit Organizationsselected answer correct	not attempted	not attempted
		Fiduciary Net Position: Restricted for Community Nonprofit Organizationsselected answer correct	not attempted

CITY OF BELVEDERE
Statement of Changes in Fiduciary Net Position
Community Trust Fund
For the Year Ended June 30, 2020
Additions:
Contributionsselected answer correct	not attempted
not attempted	not attempted
Investment Income:
Interestselected answer correct	not attempted
Dividendsselected answer correct	not attempted
Increase in Fair Value of Investmentsselected answer correct	not attempted
not attempted	not attempted
Total Additions	0
Deductions:
Administrative Expensesselected answer correct	not attempted
Distribution to Community Nonprofit Organizationsselected answer correct	not attempted
not attempted	not attempted
Total Deductions	0
Change in Fiduciary Net positionselected answer correct	0
Fiduciary Net position Beginning of Yearselected answer correct	not attempted
Fiduciary Net position End of Yearselected answer correct	$0