The city of Titanville established an Investment Trust Fund for Bay Town and Valley City. The cities contributed $280,000 and $140,000, respectively, to the fund. During the year, the following transactions took place: 1. Bay Town contributed Certificates of deposit (CDs) valued at $280,000, and Valley City contributed $140,000 cash to the fund. 2. The cash contributed by Valley City was invested in U.S. government securities. 3. Some of the CDs matured. The principal was $98,000, interest on the CDs was $4,200. 4. The principal amount received in the previous transaction was reinvested in municipal bonds. 5. The fund incurred administrative costs totaling $980, of which $700 was paid in cash. 6. The General Fund charged the Investment Trust Fund $700 for managing the investments. This amount was paid in cash. 7. The trust fund income, less expenses, of $2,520 ( $4,200 - $980 - $700) was distributed as provided in the trust agreement: two-thirds to Bay Town and one-third to Valley City. Prepare journal entries to record the transactions in the Investment Trust Fund. If an entry affects more than one debit or credit account, enter the accounts in order of magnitude (largest to smallest balances), debits first.

	Account	Debit	Credit
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	To record contributions from Bay Town and Valley City
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	To record investment in U.S. government securities.
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	To record redemption of CDs.
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	To record investment in municipal bonds.
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	To record administrative costs.
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	To record investment management fees.
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	To record distributions to Bay Town and Valley City.

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