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Exerclse $7\mathrm{.}6($Algo$)$ Required B$1$ Required B$2$

Prepare a Statement of Changes in Fiduciary Net Position for the Belvedere Community Trust Fund. Required A

Required B$1$

Required B$2$

Prepare a Statement of Fiduciary Net Position.

On July $1,2019,$ the City of Belvedere accepted a gift of cash in the amount of $$3,250,000$ from a number of individuals and

foundations and signed an agreement to establish a private$-$purpose trust. The $$3,250,000$ 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 officisls and other community leaders. The agreement provides that any increases in the market value of the principal investments

ore to be held in trust, if the investments fall below the gift amounts, then esrnings 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:

On July $1,$ the original gift of cash was received.

On August $1,$$$2,195,000$ in XYZ Company bonds were purchased at par plus accrued interest $($ $$36,583).$ The bonds pay an annual

rate of $5$ percent interest semiannuslly on April $1$ and October $1.$

On August $2,$ $$905,000$ in ABC Company common stock was purchased. ABC normally declares and pays dividends semiannually.

on January $31$ and July $31.$

On October $1,$ the first semiannual interest payment $($$$54,875)$ was received from XYZ Company. Note that part of this is for accrued

interest due st the time of purchase; the remsining part is an addition that may be used for distribution.

On January $31,$ a cash dividend was received from ABC Company in the amount of $$25,000.$

On March $1,$ the ABC stock was sold for $$921,000.$ On the same doy. DEF Company stock was purchased for $$969,000.$

On April $1,$ the second semiannual interest payment was received from XYZ Company.

During the month of June, distributions were approved by the Board and paid in cash in the amount of $$82,900.$

Administrative expenses were recorded and poid in the amount of $$5,900.$

An accrual for interest on the XYZ bonds was made as of June $30,2020.$

As of June $30,2020,$ the fair value of the $xYZ$ bonds, exclusive of accrued interest, was determined to be $$2,198,000.$ The fair value

of the DEF stock was determined to be $$963,000.$

Closing entries were prepared.

Required:

a$.$ The above events and transactions occurred during the fiscal yesr 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.

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