Baird County maintains an investment trust fund for the School District and the Town of Bairdville (separate governments). Presented below is the preclosing trial balance for the investment trust fund, a private-purpose trust fund.

Prepare the year-end closing entries and a Statement of Changes in Fiduciary Net Assets for the year ended December 31, 2012. Investment earnings are distributed among the School District and Town in proportion to the amounts contributed (two-thirds to the School District and one-third to theTown).

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Trial Balance-December 31, 2012 Accrued Interest Receivable Cash Deposits-School District Deposits-Town of Bairdville Decrease in Fair Value of Investments (bonds) Interest Income Investments-Corporate Bonds Investments-U.S. Treasury Securities Net assets held in trust School District (Jan 1) Net assets held in trust Town of Bairdville (Jan. 1) Debits Credits S 5,000 14,000 5 242,000 121,000 12,000 33,000 1,220,000 645,000 1,000,000 500,000