The City of Mimosa reports most types of investments at fair value, except those exempted by GASB Statement No. 72. The following transactions occurred in the City of Mimosa during fiscal year 20X4 (all amounts are in thousands of dollars):
1. Purchased investments in long-term, participating, interest-bearing securities, $3,000.
2. Collected interest on its investments of $200.
3. Sold 10% of the investments for $304.
4. Purchased 6-month U.S. Treasury Bills for $100.
5. Accrued interest on at year end amounted to $15.
6. The fair value of the investments in long-term participating, interest-bearing securities at year end was $2,620. The fair value of the investments in U.S. Treasury Bills at year end was $99.
Requirements:
1. Prepare the journal entries for each of these transactions.
2. What is the total interest revenue to be reported for FY 20X4?

Question

The City of Mimosa reports most types of investments at fair value, except those exempted by GASB Statement No. 72. The following transactions occurred in the City of Mimosa during fiscal year 20X4 (all amounts are in thousands of dollars):
1. Purchased investments in long-term, participating, interest-bearing securities, $3,000.
2. Collected interest on its investments of $200.
3. Sold 10% of the investments for $304.
4. Purchased 6-month U.S. Treasury Bills for $100.
5. Accrued interest on at year end amounted to $15.
6. The fair value of the investments in long-term participating, interest-bearing securities at year end was $2,620. The fair value of the investments in U.S. Treasury Bills at year end was $99. 
Requirements:
1. Prepare the journal entries for each of these transactions.
2. What is the total interest revenue to be reported for FY 20X4?

Quizplus · Accepted Answer

The Answer of The City of Mimosa reports most types of investments at fair value, except those exempted by GASB Statement No. 72. The following transactions occurred in the City of Mimosa during fiscal year 20X4 (all amounts are in thousands of dollars):
1. Purchased investments in long-term, participating, interest-bearing securities, $3,000.
2. Collected interest on its investments of $200.
3. Sold 10% of the investments for $304.
4. Purchased 6-month U.S. Treasury Bills for $100.
5. Accrued interest on at year end amounted to $15.
6. The fair value of the investments in long-term participating, interest-bearing securities at year end was $2,620. The fair value of the investments in U.S. Treasury Bills at year end was $99. 
Requirements:
1. Prepare the journal entries for each of these transactions.
2. What is the total interest revenue to be reported for FY 20X4?

The City of Mimosa Reports Most Types of Investments at Fair