ENTRY NO. A–5, ACCOUNTS RECEIVABLE REVENUE ARE ACCRUED FOR INTEREST EARNINGS ON INVESTMENTS - 10604
Nature of Transaction:
Accounts receivable for interest earnings on investments are accrued as of June 30 with appropriate adjustment of accrued interest purchased, premium, and discount accounts. This entry is dated and posted as of June 30.
Journal Entry for General Ledger Account:
Debit:
1313 Accounts Receivable—Revenue a/
2014 Discount on Securities b/
Credit:
1320 Accrued Interest Receivable c/
2013 Premium on Securities d/
8000 Revenue e/
a/ Amount of interest accrued since the last interest date.
b/ Amount of discount accumulation since the last interest date.
c/ Amount of accrued interest not yet collected.
d/ Amount of premium amortization since the last interest date.
e/ Amount of interest earned.
Source:
Document—Controller's Journal Entry.
Explanation:
The State Controller's Office will accrue interest earned but not yet received at June 30 and will send the agency a copy of its Journal Entry showing all amounts to be included in this entry.