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During 2019, Alpha Company decided to purchase bonds of publicly listed companies for investment purposes. On July 1, 2019, Alpha Company purchased $950,400 of 10%
During 2019, Alpha Company decided to purchase bonds of publicly listed companies for investment purposes. On July 1, 2019, Alpha Company purchased $950,400 of 10% bonds at par. The market value of those bonds on December 31, 2019 (financial year-end) was $1,200,000. Required: Prepare the appropriate adjusting entry on December 31, 2019, to properly reflect the fair value of the bonds assuming that the bonds are classified as: A. Trading securities. B. Securities available for sale. C. Held-to-maturity securities. Note: You have to solve this question on your computer, save it and upload it as required in the
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