Question

(Journal entries and financial statements for an Investment Trust Fund) Pinnacle County operates an Investment Trust Fund for cities located in the county. The following en- tries are associated with the fund during 2019. 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, 2019 (assume that the Investment Trust Fund began this year), and (c) a statement of fiduciary net position for the fund as of that date. P8-46. LO 3 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. C ertificates of deposit (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 investment was paid in cash. ome of $50,000 was distributed to the participating cities according to the trust agreement. nal ontries fr an Investment Trust Fund) 4", ル

Answer 1