Question
Crane Corporation purchased trading investment bonds for $41,000 at par. At December 31, Crane received annual interest of $1,640, and the fair value of the
Crane Corporation purchased trading investment bonds for $41,000 at par. At December 31, Crane received annual interest of $1,640, and the fair value of the bonds was $38,500. Prepare Cranes journal entries for (a) the purchase of the investment, (b) the interest received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.)
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Managerial Economics In A Global Economy
Authors: Dominick Salvatore
9th Edition
0190848251, 9780190848255
