The gift was recorded on June 1.
On June 1, ABC Company bonds were purchased as investments in the amount of $950,000 (par value). The bonds carry an annual interest rate of 6 percent, payable semiannually on December 1 and June 1.
On December 1, the semiannual interest payment was received.
From December 1 through December 31, $27,700 in book purchases were made; full payment was made in cash.
On December 31, an accrual was made for interest.
Also, on December 31, a reading of the financial press indicated that the ABC bonds had a fair value of $966,000, exclusive of accrued interest.
Record the transactions on the books of the Library Book Permanent Fund.
Prepare a separate Statement of Revenues, Expenditures, and Changes in Fund Balances for the Library Book Permanent Fund for the Year Ended December 31, 2012.