a. Prepare the general journal entries to record the following transactions in the General Fund General Ledger

Question:

a. Prepare the general journal entries to record the following transactions in the General Fund General Ledger of Alderman City:
1. Purchased investments in bonds at January 1, 20X6, for $350,000.
2. Received interest of $23,000 at December 31, 20X6.
3. Fair value of the bonds at December 31, 20X6, $360,000.
4. Received interest of $23,000 at December 31, 20X7.
5. Fair value of the bonds at December 31, 20X7, $345,000.
b. Show how Alderman City should report its investment income each year. The city reports the required detail in the financial statements, not in the notes.