Question
On January 1, 2016, Hoosier Company purchased $912,000 of 10% bonds at face value. The bond market value was $971,000 on December 31, 2016. Required:
On January 1, 2016, Hoosier Company purchased $912,000 of 10% bonds at face value. The bond market value was $971,000 on December 31, 2016.
Required:
Prepare the appropriate journal entry on December 31, 2016, to properly value the bonds assuming the bonds are classified as: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Trading securities.
2. Securities available for sale.
3. Held-to-maturity securities.
Step by Step Solution
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S No Date Accounts Dr Cr 1 Dec 312016 Fair value adjustment bonds 5900000 Net realized holdin...
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Fundamental Financial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds
9th edition
9781259296802, 9781259296758, 78025907, 1259296806, 9781259296765, 978-0078025907
