Please bold answer in explanation

On July 1, 2019, the City of Belvedere accepted a gift of cash in the amount of $3.390.000 from a number of individuals and foundations and signed an agreement to establish a private-purpose trust. The $3.390.000 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. $2.218.000 in XYZ Company bonds were purchased at par plus accrued interest ($36.967). 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 ($55.450) 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 $983.000. 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 $96.000. 9. Administrative expenses were recorded and paid in the amount of $7.300. 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 $2.219.000. The fair value of the DEF stock was determined to be $979,000. 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 Complete this question by entering your answers in the tabs below. 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 Debit Credit 1 01 Cash 55.450 Additions-Investment EarningsInterest 55.450 2 02 90.000 Deductions-Distributions to Nonprofit Organizations Cash 98,000 3 03 7.300 Deductions-Administrative Expenses Cash 7.300 4 04 40.550 Accrued Interest Receivable Additions-Investment Earnings-Interest 40.550 5 05 1,000 Investment in XYZ Company Bonds Additions-Investment EarningsNet Increase(decrease) in Fair Value of Investments AdditionsInvestment EarningsNet Increase(decrease) in Fair Value of Investments 3.000 4,000 Complete this question by entering your answers in the tabs below. Required A Required B1 Required 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 S 3,390,000 Investment Income: Interest Dividends 149,513 3,539,513 Total Additions Deductions: Administrative Expenses Distribution to Community Nonprofit Organizations 7.300 98,000 103,300 3,436,213 Total Deductions Change in Fiduciary Net position Fiduciary Net position Beginning of Year Fiduciary Net position End of Year S 3,436.213 Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 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 Accrued Interest Receivable Investments in Corporate Bonds Investments in Corporate Bonds S 197.663 40.550 2.219,000 979,000 $ 3,436,213 Total Assets Liabilities and Fund Equity Liabilities Investments in Corporate Equities Total Liabilities Fiduciary Net Position Restricted for Private Purpose 3.436.213 3,436,213 Total Net Position S On July 1, 2019, the City of Belvedere accepted a gift of cash in the amount of $3.390.000 from a number of individuals and foundations and signed an agreement to establish a private-purpose trust. The $3.390.000 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. $2.218.000 in XYZ Company bonds were purchased at par plus accrued interest ($36.967). 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 ($55.450) 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 $983.000. 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 $96.000. 9. Administrative expenses were recorded and paid in the amount of $7.300. 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 $2.219.000. The fair value of the DEF stock was determined to be $979,000. 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 Complete this question by entering your answers in the tabs below. 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 Debit Credit 1 01 Cash 55.450 Additions-Investment EarningsInterest 55.450 2 02 90.000 Deductions-Distributions to Nonprofit Organizations Cash 98,000 3 03 7.300 Deductions-Administrative Expenses Cash 7.300 4 04 40.550 Accrued Interest Receivable Additions-Investment Earnings-Interest 40.550 5 05 1,000 Investment in XYZ Company Bonds Additions-Investment EarningsNet Increase(decrease) in Fair Value of Investments AdditionsInvestment EarningsNet Increase(decrease) in Fair Value of Investments 3.000 4,000 Complete this question by entering your answers in the tabs below. Required A Required B1 Required 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 S 3,390,000 Investment Income: Interest Dividends 149,513 3,539,513 Total Additions Deductions: Administrative Expenses Distribution to Community Nonprofit Organizations 7.300 98,000 103,300 3,436,213 Total Deductions Change in Fiduciary Net position Fiduciary Net position Beginning of Year Fiduciary Net position End of Year S 3,436.213 Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 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 Accrued Interest Receivable Investments in Corporate Bonds Investments in Corporate Bonds S 197.663 40.550 2.219,000 979,000 $ 3,436,213 Total Assets Liabilities and Fund Equity Liabilities Investments in Corporate Equities Total Liabilities Fiduciary Net Position Restricted for Private Purpose 3.436.213 3,436,213 Total Net Position S