a. The following events and transactions occurred during the fiscal year ended June 30, 2012. Record them in the Belvedere Community Trust Fund.
(1) On July 1, the original gift of cash was received.
(2) On July 1, $2,000,000 in XYZ Company bonds were purchased at par plus accrued interest. The bonds pay an annual rate of 6 percent interest semiannually on April 1 and October 1.
(3) On July 2, $950,000 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 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 $38,000.
(6) On March 1, the ABC stock was sold for $960,000. 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 $104,000.
(9) Administrative expenses were recorded and paid in the amount of $7,500.
(10) An accrual for interest on the XYZ bonds was made as of June 30, 2012.
(11) As of June 30, 2012, the fair value of the XYZ bonds, exclusive of accrued interest, was determined to be $2,002,000. The fair value of the DEF stock was determined to be $960,000.
(12) Closing entries were prepared.
b. Prepare, in good form, (1) a Statement of Changes in Fiduciary Net Assets for the Belvedere Community Trust Fund and (2) a Statement of Fiduciary Net Assets.