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On July 1, 2019, the City of Belvedere accepted a gift of cash in the amount of $3,200,000 from a number of individuals and foundations and signed an agreement to establish a private-purpose trust. The $3,200,000 and any additional gifts are to be invested and retained as principal. Income from the trust is to be distributed to community nonprofit groups as directed by a Board consisting of city officials and other community leaders. The agreement provides that any increases in the market value of the principal investments are to be held in trust; if the investments fall below the gift amounts, then earnings are to be withheld until the principal amount is re-established. The following events and transactions occurred during the fiscal year ended June 30, 2020. Record them in the Belvedere Community Trust Fund:

1. On July 1, the original gift of cash was received.
2. On August 1, $2,200,000 in XYZ Company bonds were purchased at par plus accrued interest ($36,667). The bonds pay an annual rate of 5 percent interest semiannually on April 1 and October 1.
3. On August 2, $900,000 in ABC Company common stock was purchased. ABC normally declares and pays dividends semiannually, on January 31 and July 31.
4. On October 1, the first semiannual interest payment ($55,000) was received from XYZ Company. Note that part of this is for accrued interest due at the time of purchase; the remaining part is an addition that may be used for distribution.
5. On January 31, a cash dividend was received from ABC Company in the amount of $25,000.
6. On March 1, the ABC stock was sold for $921,000. On the same day, DEF Company stock was purchased for $965,000.
7. On April 1, the second semiannual interest payment was received from XYZ Company.
8. During the month of June, distributions were approved by the Board and paid in cash in the amount of $82,500.
9. Administrative expenses were recorded and paid in the amount of $5,500.
10. An accrual for interest on the XYZ bonds was made as of June 30, 2020.
11. As of June 30, 2020, the fair value of the XYZ bonds, exclusive of accrued interest, was determined to be $2,203,000. The fair value of the DEF stock was determined to be $961,000.
12. Closing entries were prepared.

Required: a. The above events and transactions occurred during the fiscal year ended June 30, 2020. Record them in the Belvedere Community Trust Fund. b. Prepare (1) a Statement of Changes in Fiduciary Net Position for the Belvedere Community Trust Fund and (2) a Statement of Fiduciary Net Position.

View transaction list No Transaction 1 01 2 3 4 5 02 03 04 05 View journal entry worksheet Cash Additions Contributions General Journal Investment in XYZ Company Bonds Accrued Interest Receivable Cash Investment in ABC Company Stock Cash Cash Accrued Interest Receivable Additions Investment Earnings-Interest Cash Additions-Investment Earnings-Dividends Debit 3,200,000 2,200,000 36,667 900,000 55,000 25,000 Credit 3,200,000 2,236,667 900,000 36,667 18,333 25,000 X 6 7 8 9 10 11 6a 6b 07 08 09 10 Cash Investment in ABC Company Stock Additions-Investment Earnings-Net Increase(decrease) in Fair Value of Investments Investment in DEF Company Stock Cash Cash Additions-Investment Earnings-Interest Deductions-Distributions to Nonprofit Organizations Cash Deductions Administrative Expenses Cash Accrued Interest Receivable Additions Investment Earnings-Interest 921,000 965,000 55,000 82,500 5,500 27,500 900,000 21,000 965,000 55,000 82,500 5,500 27,500 11 12 13 10 11 12 Accrued Interest Receivable Additions-Investment Earnings-Interest Investment in XYZ Company Bonds Additions-Investment Earnings-Net Increase(decrease) in Fair Value of Investments Investment in DEF Company Stock Additions Contributions Additions-Investment Earnings-Interest Additions-Investment Earnings-Dividends Additions Investment Earnings-Net Increase(decrease) in Fair Value of Investments Deductions Administrative Expenses Deductions-Distributions to Nonprofit Organizations Fiduciary Net Position: Restricted for Community Nonprofit Organizations 27,500 3,000 1,000 3,200,000 100,833 25,000 20,000 27,500 4,000 5,500 82,500 3,257,833 Additions: Contributions CITY OF BELVEDERE Statement of Changes in Fiduciary Net Position Community Trust Fund For the Year Ended June 30, 2020 Investment Income: Interest Dividends Increase in Fair Value of Investments Total Additions Deductions: Administrative Expenses Distribution to Community Nonprofit Organizations Total Deductions $ 3,200,000 100,833 25,000 20,000 3,345,833 5,500 82,500 88,000 Investment Income: Interest Dividends Increase in Fair Value of Investments Total Additions Deductions: Administrative Expenses Distribution to Community Nonprofit Organizations Total Deductions Change in Fiduciary Net position Fiduciary Net position Beginning of Year Fiduciary Net position End of Year 100,833 25,000 20,000 3,345,833 5,500 82,500 88,000 3,257,833 0 3,257,833 Prepare a Statement of Fiduciary Net Position. CITY OF BELVEDERE Statement of Fiduciary Net Position Community Trust Fund As of June 30, 2020 Assets Cash Accrued Interest Receivable Investments in Corporate Bonds Total Assets Liabilities and Fund Equity Total Liabilities Liabilities Fiduciary Net Position Restricted for Private Purpose Trust Fund Activities $ 66,333 27,500 3,165,000 $ 3,258,833 0 0 3,257,833 Cash Accrued Interest Receivable Investments in Corporate Bonds Assets Total Assets Liabilities and Fund Equity Total Liabilities Liabilities Fiduciary Net Position Total Net Position Restricted for Private Purpose Trust Fund Activities $ 66,333 27,500 3,165,000 $ 3,258,833 0 0 3,257,833 3,257,833

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