Twee Corporation Creates a Bond Sinking Fund on July 1

Twee Corporation creates a bond sinking fund on July 1, 2019, the first day of its fiscal year in preparation of payment of principal of $300,000 due in six years. Twee makes a $50,000 cash deposit into the account and invests it in an oil stock fund. During the year, $4,400 is earned on this investment. Fund administrative expenses for this fund amount to $50. Record the journal entry for the creation of this fund, the earnings on the investment, and for the required amount of investment into the sinking fund at the beginning of the second year.

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