You have been hired as trustee for the testamentary trust created by the will of George Wilson. The trust is created on April 30, 2015. (Use the information provided in P 23-3 and P 23-4.) The trust initially invests the proceeds from the estate in a checking account, which pays 3 percent per year. Interest is paid quarterly. On May 3, the trust invests $450,000 in a certificate of deposit at the local bank. The certificate earns 6 percent interest per year, paid monthly. On May 25, the trust sells the land for $31,300 in cash.
On May 31 and June 30, you pay the $165 monthly service fees to the bank. On June 3, you receive a check for $2,250, representing the first month's interest on the certificate of deposit. On June 15, you send a check to Jimmy Wilson (George's oldest son) for $8,700 to cover his fall semester tuition, room, and board at Big State University.
REQUIRED:
Prepare the entry to record the creation of the Wilson Family Trust on April 30. Prepare all required entries to account for trust activities through June 30.