Question: (Journal entries for an Investment Trust Fund) Prepare the journal entries to record the following transactions in an Investment Trust Fund for Seggen County during the calendar year 2013.
1. Turtle Creek and Pineview contributed $60,000 and $40,000, respectively, to an Investment Trust Fund operated by Seggen County during 2013.
2. Investments totaling $75,000 were purchased.
3. Income from the investments during the year totaled $8,000.
4. The fund paid $1,500 to the county for investment management fees.
5. The investments increased in value by $3,000.
6. Income of $10,000 was paid to the two cities, based on the relative amount of their initial investment.