Liu Corporation had the following transactions in debt instruments purchased to earn interest during ended December 31,

Question:

Liu had the following transactions in debt instruments purchased to earn interest during ended December 31, 2017:
Jan. 1 Purchased a 180-day (six-month) Government of Canada treasury bill for $98,039.
June 30 Received $100,000 cash when the treasury bill matured.
July 5 Purchased a money-market fund for $25,000.
Oct. 1 Cashed in the money-market fund, receiving $25,185.
1 Purchased a six-month, 3%, term deposit for $75,000.
Dec. 31 Accrued semi-annual interest on the term deposit.
Instructions
(a) Record the transactions.
(b) Show the financial statement presentation of the investment at December 31 and any related accounts.
TAKING IT FURTHER
What was the annual rate of interest earned on the treasury bill?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...