On July 1, 2019, the City of Belvedere accepted a gift of cash in the amount of $3,270,000 from a number of individuals and foundations and signed an agreement to establish a private-purpose trust. The $3,270,000 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, $2,194,000 in XYZ Company bonds were purchased at par plus accrued interest ($36,567). The bonds pay an annual rate of 5 percent interest semiannually on April 1 and October 1. 3. On August 2, $908,000 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 ($54,850) 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 $971,000. 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 $84,000. 9. Administrative expenses were recorded and paid in the amount of $6,100. 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 $2,196,000. The fair value of the DEF stock was determined to be $967,000. 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. View transaction list View journal entry worksheet No Transaction General Journal 1 01 Cash Debit Credit 3,270,000 Additions-Contributions 3,270,000 2 02 Investment in XYZ Company Bonds 2,194,000 Accrued Interest Receivable 36,567 Cash 2.230,567 3 03 Investment in ABC Company Stock 908,000 Cash 908,000 4 04 18 Cash 54,850 Accrued Interest Receivable 36.567 Additions-Investment Earings-Interest 18,283 5 05 Cash Additions--Investment Earnings-Dividends 25,000 25,000 N 6 Cash Investment in ABC Company Stock Additions-Investment Eamings-Net Increase(decrease) in Fair Value of Investments 921,000 11,000 910,000 77 6b Investment in DEF Company Stock 971,000 Cash 971,000 8 07 Cash 54,850 Additions-Investment Earings-Interest 54,850 Deductions-Distributions to Nonprofit 08 84,000 Organizations Cash 84,000 10 09 Deductions Administrative Expenses 6,100 Cash 6,100 N 11 10 191 Accrued interest Receivable Additions-Investment Eamings-Interest 12 11 Investment in XYZ Company Bonds 2,196,000 Additions-Investment Eamings-Net Increase(decrease) in Fair Value of Investments Investment in DEF Company Stock 13 12 Additions Contributions Additions-Investment Eamings-Interest Additions-Investment Earnings-Dividends Additions-Investment Earnings-Not Increase(decrease) in Fair Value of Investments Deductions Administrative Expenses Deductions-Distributions to Nonprofit Organizations Fiduciary Net Position: Restricted for Community Nonprofit Organizations 967,000 3,270,000 Complete this question by entering your answers in the tabs below. Required Required Required B1 B2 Prepare a Statement of Changes in Fiduciary Net Position for the Belvedere Community Trust Fund. CITY OF BELVEDERE Statement of Changes In Fiduciary Net Position Community Trust Fund For the Year Ended June 30, 2020 Additions: Contributions $ 3,270,000 Investment Income: Interest Dividends Increase in Fair Value of Investments Total Additions Deductions: Distribution to Community Nonprofit Organizations Administrative Expenses Total Deductions Change in Fiduciary Net position Fiduciary Net position Beginning of Year Fiduciary Net position End of Year 3,270,000 0 3,270,000 $ 3,270,000 < Required A Required B2 > Complete this question by entering your answers in the tabs below. Required Required Required A B1 B2 Prepare a Statement of Fiduciary Net Position. Cash CITY OF BELVEDERE Statement of Fiduciary Net Position Community Trust Fund As of June 30, 2020 Assets Investments in Corporate Equities Investments in Corporate Bonds Accrued Interest Receivable Total Assets Liabilities and Fund Equity Liabilities Total Liabilities Fiduciary Net Position Restricted for Private Purpose Trust Fund Activities $ 0 Total Net Position $ < Required B1 Required B2 >