You have been hired as trustee for the testamentary trust created by the will of George Wilson. The trust is created on April 30, 2011. (Use the information provided in P 23-3 and P 23-4) The trust initially invests the proceeds from the estate in a checking account, which pays 3 percent per year. Interest is paid quarterly. On May 3, the trust invests $450,000 in a certificate of deposit at the local bank. The certificate earns 6 percent interest per year, paid monthly. On May 25, the trust sells the land for $31,300 in cash. On May 31 and June 30, you pay the $165 monthly service fees to the bank. On June 3, you receive a check for $2,250, representing the first month’s interest on the certificate of deposit. On June 15, you send a check to Jimmy Wilson (George’s oldest son) for $8,700 to cover his fall semester tuition, room, and board at Big State University.
Prepare the entry to record the creation of the Wilson Family Trust on April 30. Prepare all required entries to account for trust activities through June 30.