The City of St. John operates an investment trust fund for neighboring governments, including St. John County and the independent school district. Assume the investment trust fund began the year 2020 with investments in US government securities totaling $1,200,000, no liabilities, and Restricted Net Position of $1,200,000. 1. The county and school district deposited $3,300,000 in the investment pool. 2. The investment trust fund invested $1,000,000 in corporate bonds and $2,300,000 in US government securities. 3. Interest received by the investment trust fund totaled $50,000 for the year. 4. At year-end, the fair value of the corporate bonds had increased by $6,000. 5. The earnings of the fund (there are no expenses) are allocated among the accounts of the participating governments. 6. Throughout the year, the participating governments withdrew $3,100,000 of funds from the investment trust fund. Assume that an equal amount of short-term investments were converted to cash as they matured. Required: a. Record the above transactions in the books of the investment pool. b. Prepare a Statement of Changes in Fiduciary Net Position for the investment pool for the year ended June 30, 2020. Required A Required B Record the above transactions in the books of the investment pool. (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 Debit Credit No 1 Transaction 01 General Journal Cash Pool Participant Deposits 3,300,000 3,300,000 2 02 Investment In Corporate Bonds Investment In US Securities Cash 1,000,000 2,300,000 3,300,000 3 03 50,000 Cash AdditionsInvestment EarningsInterest 50,000 4 04 6,000 Investment In Corporate Bonds Net Increase In FMV Of Investments 6,000 5 01 05 Deductions-Distributions To Pool Participants Reinvested Distributions To Pool Participants 6 3,100,000 Pool Participant Withdrawals Cash 3,100,000 7 6b Cash Investment In US Securities Required A Required B Prepare a statement of Changes in Fiduciary Net Position for the investment pool for the year ended June 30, 2020. (Amounts to be deducted should be indicated with a minus sign.) CITY OF ST. JOHN Investment Trust Fund Statement of Changes in Fiduciary Net Position For the Year Ended June 30, 2020 Additions Investment Income: Increase in Fair Value of Investments Interest $ 6,000 50,000 56,000 Total Additions Participant Account Transactions Deposits by Investment Pool Participants Withdrawals by Investment Pool Participants Reinvestment of Investment Pool Distributions $ 3,300,000 (3,100,000) $ 200.000 Total Participant Account Transactions Deductions Distributions to Investment Pool Participants 0 Total Deductions Change in Fiduciary Net Position Fiduciary Net Position Beginning of Year Fiduciary Net Position End of Year 200,000 1,200,000 1,400,000 $
