On January 1, 20X1, Washington City received 200,000 from an estate with the stipulation that the money be invested and the income be used to provide maintenance to the city cemetery. The money was invested in 7% governmental securities at 90 to yield an effective interest rate of 10%. The following journal entry would be made to account for the accrued interest of the permanent fund:

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The Answer of On January 1, 20X1, Washington City received 200,000 from an estate with the stipulation that the money be invested and the income be used to provide maintenance to the city cemetery. The money was invested in 7% governmental securities at 90 to yield an effective interest rate of 10%. The following journal entry would be made to account for the accrued interest of the permanent fund:

On January 1, 20X1, Washington City Received 200,000 from an Estate