Answer:
The beginning part of the question is found below:
The City of Monroe Scholarship Foundation private-purpose trust fund had the following account balances on January 1, 2017:
                                                      Debits                                  Credits
Cash                                             $49,500
Accrued Interest Receivable       $7,500
Investments in Corporate Bonds $750,000
Net Assets Held in Trust                                                      $807,000
Totals                                            $ 807,000                       $ 807,000
Find below the necessary journal entries in the explanation section:
Explanation:
The interest received =6%*$750,000*6/12=$22,500
Dr Cash            $22,500
Cr Interest income(balance)       $15,000           
Cr Accrued interest receivable   $7,500
Additional funds of $205,500 received:
Dr Cash                  $205,500
Cr donation income                $205,500
the investment of $200,000 in corporation stock
Dr investment in corporation stocks  $200,000
Cr Cash                                                                  $200,000
receipt of half of the year annual interest on bonds(as calculated above at $22,500)
Dr cash    $22,500
Cr Interest income   $22,500
cash is debited when there is an inflow and credited in case of outflows
The investment account is debited because it is an asset