Reference no: EM132011403

Question - 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.