Aslan County purchased 3 000 000 of bonds as a General Fund
Aslan County purchased $3,000,000 of bonds as a General Fund investment on March 1, 20X7, for $3,060,000 plus four months accrued interest of $80,000. The bonds mature in four years and two months.
1. The county received the semiannual interest payment on the bonds ($120,000) on April 30, 20X7.
2. The county received the October 31 semiannual interest payment ($120,000).
3. On December 31, the end of Aslan’s fiscal year, the fair value of its bond investment was $3,065,000 (excluding accrued interest).

Required
(a) Record these transactions in the General Ledger accounts of the Aslan County General Fund.
(b) Compute the investment income that should be reported for this investment.

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help