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 $1,300,000, no liabilities, and Restricted Net Position of $1,300,000.

1. The county and school district deposited $3,400,000 in the investment pool.
2. The investment trust fund invested $1,400,000 in corporate bonds and $2,000,000 in US government securities.
3. Interest received by the investment trust fund totaled $40,000 for the year.
4. At year-end, the fair value of the corporate bonds had increased by $4,000.
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 $3,230,000 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.

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.)

No	Transaction	General Journal	Debit	Credit
1	01	Cash	3,400,000
		Pool Participant Deposits		3,400,000
2	02	Investment In Corporate Bonds	1,400,000
		Investment In US Securities	2,000,000
		Cash		3,400,000
3	03	Cash	40,000
		AdditionsInvestment EarningsInterest		40,000
4	04	Investment In Corporate Bonds	4,000
		Net Increase In FMV Of Investments		4,000
5	05	DeductionsDistributions To Pool Participants	44,000
		Reinvested Distributions To Pool Participants		44,000
6	6a	Pool Participant Withdrawals	3,230,000
		Cash		3,230,000
7	6b	Cash	3,230,000
		Investment In US Securities		3,230,000

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	$4,000
Interest	40,000
Total Additions	44,000
Participant Account Transactions
Deposits by Investment Pool Participants	$3,400,000
Withdrawals by Investment Pool Participants	(3,230,000)
Reinvestment of Investment Pool Distributions	44,000
Total Participant Account Transactions	$214,000
Deductions
Distributions to Investment Pool Participants	44,000
Total Deductions	44,000
Change in Fiduciary Net Position	214,000
Fiduciary Net Position Beginning of Year	1,300,000
not attempted	$1,514,000