In November 2014, the 3% certificates of deposit matured; the face amount of $1,000,000 plus interest of $15,000 was collected. The interest is considered revenue of the Street Improvement Fund.
Required: Record this transaction in both the Street Improvement Fund and governmental activities journals.
List of Accounts
Cash, Investments, Taxes Receivable-Sales, Interest Receivable on Investments, Vouchers Payable, Judgements Payable, Contracts Payable, Contracts Payable- Retained Percentage, Fund Balance- Restricted, Encumbrances Outstanding, Revenues, Other Financing Sources-Proceeds of Bonds, Construction Expenditure, Interest Expenditure, Other Financing Uses-Interfund Transfers Out, Encumbrances
Solution
the interest is tax deductable and total $15,000 is treats as income to the investor.
journals:
cash a/c 15,000
to interest received account 15000
.
In November 2014- the 3- certificates of deposit matured- the face amo.docx
1. In November 2014, the 3% certificates of deposit matured; the face amount of $1,000,000 plus
interest of $15,000 was collected. The interest is considered revenue of the Street Improvement
Fund.
Required: Record this transaction in both the Street Improvement Fund and governmental
activities journals.
List of Accounts
Cash, Investments, Taxes Receivable-Sales, Interest Receivable on Investments, Vouchers
Payable, Judgements Payable, Contracts Payable, Contracts Payable- Retained Percentage, Fund
Balance- Restricted, Encumbrances Outstanding, Revenues, Other Financing Sources-Proceeds
of Bonds, Construction Expenditure, Interest Expenditure, Other Financing Uses-Interfund
Transfers Out, Encumbrances
Solution
the interest is tax deductable and total $15,000 is treats as income to the investor.
journals:
cash a/c 15,000
to interest received account 15000
