3. The City of St. David received a gift of $1, 800,000 from a local resident on April 1, 2017 and signed an agreement that the funds would be invested permanently and that the income would be used to maintain the city cemetery. The following transactions took place during the year ended December 31, 2017. (a) The gift was recorded on April 1. (b) On April 1, 2017, XYZ Company bonds were purchased in the amount of $1,750,000, at par. The bonds carry an annual interest rate of 5 percent, payable semiannually on October 1 and April 1. (c) On October 1, the semiannual interest was received. (d) From October 1 through December 1, payments were made totaling $17,200 to a lawn service. (e) On December 31, an accrual was made for interest. (f) Also, on December 31, a reading of the financial press indicated that XYZ bonds had a fair value of $1,745,500, exclusive of accrued interest. (g) The books were

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u.s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.