City of Jackson bonds Problem 17-4

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City of Jackson bonds Problem 17-4
Under the will of Samuel H. Samuels, a bequest of $100,000 was received for research…

SKU: ACCT 567 City of Jackson bonds Problem 17-4 Categories: , Tags: , ,

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City of Jackson bonds Problem 17-4

City of Jackson bonds Problem 17-4

ACCT 567 A+

Under the will of Samuel H. Samuels, a bequest of $100,000 was received for research on gerontology. The principal of the bequest, as well as any earnings on investments, is expendable for the specified research purpose.

  1. Pending the need for the money for the designated purpose, part of the bequest was invested in $95,000 of par value City of Jackson 6 percent bonds at 103 plus accrued interest of $823.
  2. An interest payment of $2,850 was received on the City of Jackson bonds.
  3. The bonds were sold at 104 plus accrued interest of $443.
  4. The income from the Samuels gift was used for the stipulated purpose.

Required

Make journal entries for these transactions assuming that this is a not-for-profit hospital.