Q&A Hero

Question

Use the following information to answer the question(s) below.

The town of Mayberry receives a gift of $500,000 in bonds. The contributor instructs that the principal should remain intact, but the annual interest income of $50,000 can be used for the maintenance of the zoo animals.

When the interest income of $50,000 is received, what account should be credited?

A) Other Financing Sources

B) Other Financing Uses

C) Deferred Revenue

D) Revenue