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Journal entries for an Investment Trust Fund The city of Titanite escabilished an Investment Trust Fund for Bay Town and Valley City. The cities contributed S150,000 and $75,000, respectively, to the fund, During the year, the following transactions took place: 1. Bay Town contributed Certificates of deposit (CD) valued at $150,000, and Valley City contributed $75,000 cash to the fund. 2. The cash contributed by Valley Cly was invested in US goverment securities 3. Some of the CDs matured. The principal was $52,500 interest on the CDs was $2.250. 4. The principal amount received in the previous transaction was reinvested in municipal bonds 5. The funu incurred administrative costs tocling $525, of which $375 was paid in cash 6. The General Fund charged the investment Trust Fund $375 for managing the investments. This amount was paid in cash. 7. The trust fundi come less expenses of $1,350 $2.250 - $525 - $375) 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 debitor credit account, enter the accounts in order of magnitude (largest to smallest balances), debits first. ACE Debit Crede D 0 D 0 0 le band Wilcile 0 >> 0 0 D THE D D 0 U D 0 0 el D D alo 10 > > > > > > > 0 D ID naman fees D le codulio and Valley

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