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 with the Stipulation