The City of Mimosa Reports Most Types of Investments at Fair

question 50

Essay

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?

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Definitions:

Jobs

Jobs consist of assigned tasks or roles performed by individuals within an organization or professional context in exchange for compensation.

Work Revolution

A period or movement where significant changes occur in the nature of work due to technological advances, economic shifts, or cultural transformations.

Work Relations

The dynamics and interactions between employers and employees, including negotiations, conflicts, and cooperation within a workplace.

Hierarchical

Describes a system or organization in which people or groups are ranked one above the other according to status or authority.