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 Required: a. The above events and transactions occurred during the fiscal year ended June 30, 202 Record them in the Belvedere Community Trust Fund b. Prepare() a statement of Changes in Fiduciary Net Position for the Belvedere Community Trust Fund and (2) a Statement of Fiduciary Net Position Det NO Credit General Journal Transaction O 2.500.000 1 01 Cash Additions Contributions QI 3.500.000 2 02 Investment in XYZ Company Bonds Accrued interest Receivable 2.500,000 41.667 2541.667 3 03 900.000 Investment in ABC Company Stock Cash 900,000 OOO OO ooo 00 04 62.500 Cash Accrued interest Receivable Additions Investment Earnings-terest 5 05 25.000 Cash Additions--Investment Emmings-Didends 25.000 ba 921.000 OO 911.000 Cash Investment in ABC Company Stock Additions-Investment Camings - Net Increase decrease) in Fair Value of 10.000 7 6b 945.000 Investment in DEF Company Stock Cash 945.000 00 00 9 07 25.000 Cash Additions --Investment Emigrerest 25.000 9 08 . 500 Deductions-Distributions to Nonprofit Organisation Cash . 82.500 os Deduction Administrative Expres Cash 11 10 Accued invest Recebe Additions weet 12 11 men XYZ Company Bonds Adicionar-se decine Irem DEF Cumpay Smack 0 0 0 0 0 0 0 0 0 0 0 OOOOOOOOOOOOO 13 12 Adcios Como Posts Decemos CITY OF BELVEDERE Statement of Changes in Fiduciary Net Position Community Trust Fund For the Year Ended June 30, 2020 Additions: Contributions Investment Income: Interest Dividends Increase in Fair Value of Investments Total Additions 0 Deductions: Distribution to Community Nonprofit Organizations Administrative Expenses 0 0 Total Deductions Change in Fiduciary Net position Fiduciary Net position Beginning of Year Fiduciary Net position End of Year LA 0 Prepare a Statement of Fiduciary Net Position. CITY OF BELVEDERE Statement of Fiduciary Net Position Community Trust Fund As of June 30, 2020 Assets Cash Investments in Corporate Equities Investments in Corporate Bonds Accrued Interest Receivable $ * 0 Total Assets Liabilities and Fund Equity Liabilities Total Liabilities Fiduciary Net Position Restricted for Private Purpose Trust Fund Activities Total Net Position $ 0