Nickel District Company purchased the following instruments during the year. Assume the company's fiscal year end is January 31, 2015.
Dec 1 2014 Purchased a $5,000 120 day treasury bill for $4,935. The treasury bills are trading at a market rate of interest of 4% annually.
Feb 1, 2015 Purchased at 101 a $15,000, 5% 5 year Laurentian Bond. Interest is paid semi-annually. The market rate of interest was 3.5%. The bonds were purchased to trade.
Mar 30, 2015 Treasury bill matured.
Aug 1, 2015 Received interest on the Laurentian Bond.
Aug 2, 2015 Sold the Laurentian Bonds at 99.
Instructions
Record the above transactions and any necessary adjusting entries for Nickel District required at January 31, 2015.

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The Answer of Nickel District Company purchased the following instruments during the year. Assume the company's fiscal year end is January 31, 2015.
Dec 1 2014 Purchased a $5,000 120 day treasury bill for $4,935. The treasury bills are trading at a market rate of interest of 4% annually.
Feb 1, 2015 Purchased at 101 a $15,000, 5% 5 year Laurentian Bond. Interest is paid semi-annually. The market rate of interest was 3.5%. The bonds were purchased to trade.
Mar 30, 2015 Treasury bill matured.
Aug 1, 2015 Received interest on the Laurentian Bond.
Aug 2, 2015 Sold the Laurentian Bonds at 99.
Instructions
Record the above transactions and any necessary adjusting entries for Nickel District required at January 31, 2015.

Nickel District Company Purchased the Following Instruments During the Year