The Village of Green Bay received a gift of $3,000,000 from a local resident on April...

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The Village of Green Bay received a gift of $3,000,000 from alocal resident on April 1, 2017 and signed an agreement that thefunds would be invested permanently and that the income would beused to maintain the city cemetery. The following transactions tookplace during the year ended December 31, 2017.
A.The gift was recorded on April 1.
B.On April 1, 2017, XYZ Company bonds were purchased in theamount of $3,000,000, at par. The bonds carry an annual interestrate of 5 percent, payable semiannually on October 1 and April1.
C.On October 1, the semiannual interest was received.
D.From October 1 through December 1, payments were made totaling$20,800 to a lawn service.
E.On December 31, an accrual was made for interest.
F.Also, on December 31, a reading of the financial pressindicated that XYZ bonds had a fair value of $3,003,500, exclusiveof accrued interest.
G. The books were closed.
Required:
Record the transactions on the books of the Cemetery PerpetualCare Fund using the template provided in this module.

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In the books of CEMETARY PERPETUAL CARE FUND Journal entries for the year ended 31st December SNo Particulars Debit Credit A Recording the Gift received Bank or Cash Income Gift 3000000 3000000 B See Answer

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The Village of Green Bay received a gift of $3,000,000 from alocal resident on April 1, 2017 and signed an agreement that thefunds would be invested permanently and that the income would beused to maintain the city cemetery. The following transactions tookplace during the year ended December 31, 2017.A.The gift was recorded on April 1.B.On April 1, 2017, XYZ Company bonds were purchased in theamount of $3,000,000, at par. The bonds carry an annual interestrate of 5 percent, payable semiannually on October 1 and April1.C.On October 1, the semiannual interest was received.D.From October 1 through December 1, payments were made totaling$20,800 to a lawn service.E.On December 31, an accrual was made for interest.F.Also, on December 31, a reading of the financial pressindicated that XYZ bonds had a fair value of $3,003,500, exclusiveof accrued interest.G. The books were closed.Required:Record the transactions on the books of the Cemetery PerpetualCare Fund using the template provided in this module.