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.

No	Transaction	General Journal	Debit	Credit
1	01	Cash	3,300,000
		Pool Participant Deposits		3,300,000
2	02	Investment In Corporate Bonds	1,000,000
		Investment In US Securities	2,300,000
		Cash		3,300,000
3	03	Cash	50,000
		AdditionsInvestment EarningsInterest		50,000
4	04	Investment In Corporate Bonds	6,000
		Net Increase In FMV Of Investments		6,000
5	05	DeductionsDistributions To Pool Participants	50,000
		Reinvested Distributions To Pool Participants		50,000
6	6a	Pool Participant Withdrawals	3,100,000
		Cash		3,100,000
7	6b	No Journal Entry Required

CITY OF ST. JOHN Investment Trust Fund Statement of Changes in Fiduciary Net Position For the Year Ended June 30, 2020 Additions Investment Income: Deposits by Investment Pool Participants $ Interest 3,300,000 50,000 3,350,000 Total Additions Participant Account Transactions $ 0 Total Participant Account Transactions Deductions Reinvestment of Investment Pool Distributions Total Deductions Change in Fiduciary Net Position Fiduciary Net Position Beginning of Year Fiduciary Net Position End of Year 0 1,200,000 1,200,000 $ $