Cindy Lou's Parents Passed Away While She Was Still Dependent

question 50

Essay

Cindy Lou's parents passed away while she was still dependent on them,and their will designated that a trust should be established with their estate proceeds to care for her.The following transactions occurred in the first two months following their deaths.
1.The trust account was opened with the $2,000,000 in funds received from the estate.The funds were deposited into a non-interest bearing checking account to be used for expenses.
2.$1,500,000 was put into a multi-year certificate of deposit which earned 3% annually,with interest paid monthly back to the checking account.
3.One month's interest from the certificates of deposit was received.
4.The bank's trust administration fee was paid for $65.
5.Tuition was paid for the boarding school where Cindy Lou was living for $6,500.
Required:
Prepare the journal entries for the listed transactions.Disregard the impact of estate and income taxes.

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Definitions:

Contextual Influences

Factors originating from the surrounding environment that affect individuals' perceptions, behaviors, and decisions, including cultural, social, and physical context.

Decision-making Process

The decision-making process involves identifying and choosing alternatives based on the values and preferences of the decision-maker, a critical aspect of planning and problem-solving in various contexts.

Attitude

A relatively enduring organization of beliefs, feelings, and behavioral tendencies toward socially significant objects, groups, events, or symbols, typically expressed through general liking or disliking of the attitude target.

Behavioral Tendencies

Patterns or predispositions in individuals' behavior, often influenced by psychological factors.