Indigo Corporation, during the year ended October 31, 2021, had the following transactions for money-market instruments purchased to earn interest: 2 Purchased a 130-day, $42,800 treasury bill maturing on May 1 for $42.543. The treasury bill matured. Invested $69,600 in a money-market fund. Received notification that $174 of interest had been earned and added to the fund. Received notification that $174 of interest had been earned and added to the fund. Purchased a 60-day, 2.9%, $32,100 treasury bill for $31,869. Oct. 15 Cashed the money-market fund and received $70,035. Jan May Aug Aug 31 Sept. 30 Oct. 1 1 1
Indigo Corporation, during the year ended October 31, 2021, had the following transactions for money-market instruments purchased to earn interest: 2 Purchased a 130-day, $42,800 treasury bill maturing on May 1 for $42.543. The treasury bill matured. Invested $69,600 in a money-market fund. Received notification that $174 of interest had been earned and added to the fund. Received notification that $174 of interest had been earned and added to the fund. Purchased a 60-day, 2.9%, $32,100 treasury bill for $31,869. Oct. 15 Cashed the money-market fund and received $70,035. Jan May Aug Aug 31 Sept. 30 Oct. 1 1 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Current Attempt in Progress
Indigo Corporation, during the year ended October 31, 2021, had the following transactions for money-market instruments
purchased to earn interest:
2
1
Jan.
May
Aug.
Aug. 31
Sept. 30
Oct. 1
Oct. 15 Cashed the money-market fund and received $70,035.
Purchased a 130-day, $42,800 treasury bill maturing on May 1 for $42.543.
The treasury bill matured.
Invested $69,600 in a money-market fund.
Received notification that $174 of interest had been earned and added to the fund.
Received notification that $174 of interest had been earned and added to the fund.
Purchased a 60-day, 2.9%, $32,100 treasury bill for $31,869.
1
Transcribed Image Text:Prepare any required adjusting journal entry at October 31. (Credit account titles are automatically indented when the
amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for
the amounts. Round answers to 0 decimal places, e.g. 5,275.)
Date Account Titles and Explanation
Oct. 31
Long-Term Investments at AC-Money Market Fund
Interest Revenue
(To accrue interest revenue.)
Debit
70035
Credit
70035
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