Problem:
Dale Company experiences heavy sales in the summer and early fall, after which time it has excess cash to invest until the next spring. On November 1, 20x8, the company invested $194,000 in US Treasury Bills. The bills mature in 180 days at $200,000. Prepare entries to record the purchase on November 1; the adjustment to accrue interest on December 31, which is the end of the fiscal year; the receipt of cash at the maturity date of April 30.