The Village of Green Bay received a gift of $3,000,000 from a local resident on April 1, 2017 and signed an agreement that the funds would be invested permanently and that the income would be used to maintain the city cemetery. The following transactions took place during the year ended December 31, 2017.

1. The gift was recorded on April 1.
2. On April 1, 2017, XYZ Company bonds were purchased in the amount of $3,000,000, at par. The bonds carry an annual interest rate of 5 percent, payable semiannually on October 1 and April 1.
3. On October 1, the semiannual interest was received.
4. From October 1 through December 1, payments were made totaling $20,800 to a lawn service.
5. On December 31, an accrual was made for interest.
6. Also, on December 31, a reading of the financial press indicated that XYZ bonds had a fair value of $3,003,500, exclusive of accrued interest.
7. The books were closed.

Statement of Revenues, Expenditures, and Changes in Fund Balances for the Cemetery Perpetual Care Fund for the Year Ended December 31, 2017

Balance Sheet for the Cemetery Perpetual Care Fund as of December 31, 2017.