Use the following information to answer the question(s) below.

The town of Mayberry receives a gift of $500,000 in bonds. The contributor instructs that the principal should remain intact, but the annual interest income of $50,000 can be used for the maintenance of the zoo animals.

-When the donation of bonds is received,what account should be debited?

Question

Use the following information to answer the question(s) below.

The town of Mayberry receives a gift of $500,000 in bonds. The contributor instructs that the principal should remain intact, but the annual interest income of $50,000 can be used for the maintenance of the zoo animals.

-When the donation of bonds is received,what account should be debited?

Quizplus · Accepted Answer

When a donation of bonds is received, the Investment account should be debited as it represents the increase in the value of the entity's investments.

Use the Following Information to Answer the Question(s) Below