On July $2,2020,$ Lizzie Montiel donated $$100,000$ to Carilandia City for the maintenance of the Walking Trail. She stipulated that the principal be invested, but could never be spent. Only the proceeds will be used for the maintenance of the trail. The City established a Permanent Fund. The proceeds will be transferred to a Special Revenue Fund.

Submit the journal entries to account for the following transactions:

$1.$ The PF records the cash received as revenue.

$2.$ The $$100,000$ was invested in securities$.$

$3.$ During the year, $$5,000$ of earned income was received on the investment.

$4.$ Paid $$2,000$ to cover operating costs.

$5.$ The Fund made a transfer to a Special Revenue Fund.

$6.$ Prepare the Trial Balance