Investments in Held-to-Maturity Securities Walsh Equipment Company made the following purchases of debt securities during 2009. All

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Investments in Held-to-Maturity Securities Walsh Equipment Company made the following purchases of debt securities during 2009.

All are classified as held-to-maturity, and all pay interest semiannually.

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Required:
1. Prepare journal entries for the purchases.
2. Show all adjusting entries relating to the bonds on December 31, 2009, assuming that Walsh Equipment Company closes its book on that date and uses the straight-line amortization method.

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Accounting Concepts And Applications

ISBN: 9780324376159

10th Edition

Authors: W. Steve Albrecht, James D. Stice, Earl K. Stice, Monte R. Swain

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Question Posted: Jul 01, 2024 11:04 AM

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Investments in Held-to-Maturity Securities Walsh Equipment Company made the following purchases of debt securities during 2009. All

Question:

Purchase Face Interest Maturity Date Corp. Amount Cost Rate, % Date Last Interest Payment Date 10/15/09 A $10,000 97 8 1/1/14 7/1/09 11/30/09 B 15,000 103 10 12/15/09 C 20,000 99 14 12/31/09 D 16,000 105 12 142 4/1/12 10/1/09 6/1/13 12/1/09 5/1/10 11/1/09

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Accounting Concepts And Applications

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