Permanent Fund Transactions >> At the start of 2020, a resident of the City of Laverada donated $2.5 million to the Laverada School District. The donor specified that the entire $2.5 million be invested, and investment income used to provide tutoring services for high school students. Investments were made, and 2020 investment income was $100,000. Administrative costs related to investing activities were $2,000. The school district started a tutoring program, and spent $15,000 for supplies, $25,000 for facilities rent, and $35,000 for tutors. The investments are worth $2,580,000 at the end of 2020. Required Record the events described above in a permanent fund. Include closing entries. Description Debit Credit Cash-income ex 2,500,000 O Expenditures 0 2,500,000 To record donation Investments-principal 2,500,000 0 Cash-principal 0 2,500,000 To record investment of scholarship fund. Cash-income 1,000,000 x 0 0 Investment income e 0 1,000,000 x To record earnings on investments. Expenditures 2,000 0 Cash-principal X 0 To record administrative expenses charged to income. Cash-principal X 35,000 x 0 Expenditures 0 35,000 X To record expenditures for tutoring. Investments -income e 75,000 X * 0 Expenditures X 0 75,000 X To record change in investments value. Investment income 80,000 x 0 Unrealized gain on investments 80,000 0 Investment income X 0 100,000 x Fund balance restricted 0 60,000 X To close income and expenditures. 2,000