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During the current year, Reed Consulting acquired long-term available-for-sale debt securities on July 1 at a $93,000 cost. At its December 31 year-end, these securities
During the current year, Reed Consulting acquired long-term available-for-sale debt securities on July 1 at a $93,000 cost. At its December 31 year-end, these securities had a fair value of $78,700. This is the first and only time the company purchased such securities. Required: 1. Prepare the July 1 entry to record the purchase of these debt securities. 2. Prepare the year-end adjusting entry related to these securities.
During the current year, Reed Consulting acquired long-term available-for-sale debt securities on July 1 at a $93,000 cost. At its December 31 year-end, these securities had a fair value of $78,700. This is the first and only time the company purchased such securities.
Required: 1. Prepare the July 1 entry to record the purchase of these debt securities. 2. Prepare the year-end adjusting entry related to these securities.
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