Pinnacle County operates an Investment Trust Fund for cities located in the county. The following entries are associated with the fund during 2012. Prepare
(a) Journal entries to record these transactions,
(b) A statement of changes in fiduciary net position for the fund for the year ending December 31, 2012 (assume that the Investment Trust Fund began this year) and
(c) A statement of fiduciary net position for the fund as of that date.
1. The cities of Clarksville and Kingsville contributed assets of $ 75,000 and $ 50,000, respectively.
2. The entire amount received in the previous transaction was invested: $ 65,000 in CDs and $ 60,000 in Treasury notes.
3. Interest income of $ 37,500 was received.
4. CDs totaling $ 40,000 and Treasury notes totaling $ 30,000 matured. Interest income of $ 1,000 was also received.
5. The money received in the previous transaction was reinvested in CDs.
6. Additional interest income was received: $ 17,500.
7. The General Fund charged the Investment Trust Fund $ 500 for administrative expenses. This amount was paid in cash.
8. Income of $ 50,000 was distributed to the participating cities according to the trust agreement