You have been hired as trustee for the testamentary trust created by the will of Tom Josephson. The trust is created on June 30, 2011. (Use the information provided in P 23-6 and P 23-7) The trust initially invests the proceeds from the estate in a checking account, which pays 3 percent per year. Interest is paid quarterly. On July 5, the trust invests $750,000 in a certificate of deposit at the local bank. The certificate earns 6 percent interest per year, paid monthly. On July 31, you pay the $275 quarterly trust service fees to the bank. On August 5, you receive a check for $3,750, representing the first month’s interest on the certificate of deposit. On August 19, you send a $15,000 check to Super private Academy to cover fall semester tuition, room, and board for Megan and Ryan.
Prepare the entry to record the creation of the Josephson Family Trust on June 30, 2011.
Prepare all required entries to account for trust activities through August 31.