16) Oscar Lloyd is the trustee for the Petra/Hobbes Trust. The following transactions occurred during 2011. Petra and Hobbes, two cats are going to reside with Oscar Lloyd, the trustee and devoted cat lover.
February 18The Petra/Hobbes Trust was established at First State Bank by depositing $200,000 cash.
February 19$195,000 was deposited into a three-year certificate of deposit earning 6% a year. Interest is paid semi-annually. $5,000 was deposited into a money market account paying 4% annual interest. Interest is paid on the average daily balance for the past year.
February 20Paid $368 for cat food, cat toys, and kitty litter at Cats R Us.
February 24Bought assorted cat DVDs for Hobbes and Petra. The DVDs were a combination of fish, bird, and squirrel movies. Paid $182 for the DVDs.
June 25Paid $405 for cat food, toys, and kitty litter.
August 19Deposited one-half year's interest income of $5,850 into the money market account.
December 22Paid $722 for cat food, cat toys, kitty litter, Christmas presents for Petra and Hobbes.
Prepare the necessary journal entries for the above transactions. You may ignore any tax effects.