On July 1, 2019, the City of Belvedere accepted a gift of cash in the amount of $3,500,000 from a number of individuals and foundations and signed an agreement to establish a private-purpose trust. The $3,500,000 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, $2,500,000 in XYZ Company bonds were purchased at par plus accrued interest ($41,667). The bonds pay an annual rate of 5 percent interest semiannually on April 1 and October 1 3. 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. 4. On October 1, the first semiannual interest payment ($62,500) 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 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 $945,000 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 $82,500 9. Administrative expenses were recorded and paid in the amount of $5,500 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 $2.503,000. The fair value of the DEF stock was determined to be $941,000. 12 Closing entries were prepared Score answer > 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. Required A Required B1 Required B2 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.) View transaction list View journal entry worksheet No Transaction General Journal 1 01 Cash Additions-Contributions 2 02 Investment in XYZ Company Bonds Accrued Interest Receivable Cash Debit 3,500,000 Credit 3.500.000 2.500.000 41.667 2511667 Chec Additions-Investment Earnings-Interest Investment in XYZ Company Bonds Additions-Investment Earnings-Net Increase(decrease) in Fair Value of Invest 31,250 3.000 1,000 Investment in DEF Company Stock Additions-Contributions Additions-Investment Earnings-Interest 4,000 3.500-000 145,834 Additions-Investment Earnings-Dividends 25.000 Additions-Investment Earnings-Net Increase(decrease) in Fair Value of Invest 20.000 Deductions Administrative Expenses 5,500 Deductions-Distributions to Nonprofit Organizations Fiduciary Net Position Restricted for Community Nonprofit Organizations 82.500 3.276,167 Required B1> 1 of Score answer > Additions: Contributions For the Year Ended June 30, 2020 $ 3,500,000 Investment Income: Interest 145,834 Dividends 25,000 Increase in Fair Value of Investments 20,000 Total Additions Deductions: Administrative Expenses Distribution to Community Nonprofit Organizations Total Deductions 3,690,834 5,500 82.500 88,000 Change in Fiduciary Net position 3.602.834 Fiduciary Net position Beginning of Year 0 Fiduciary Net position End of Year $ 3.602,834 Cash Community Trust Fund As of June 30, 2020 Assets Accrued Interest Receivable Investments in Corporate Equities Investments in Corporate Bonds Total Assets Liabilities and Fund Equity Liabilities Income Taxes Payable Total Liabilities Fiduciary Net Position Restricted for Private Purpose Trust Fund Activities Trust Fund Activities Total Net Position $ 119,167 31,250 941,000 2,503,000 $ 3,594,417 0 0 3,602,834 x $ 3.602,834