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Henry Inc. purchased $10,000 of Container Corporation's 5% bonds at par. The purchase was made on January 1, 2020, and the investment was classified as
Henry Inc. purchased $10,000 of Container Corporation's 5% bonds at par. The purchase was made on January 1, 2020, and the investment was classified as a trading security. On June 30, 2020, Henry Inc. received semiannual interest of $250. On that date, the fair value of the bonds was $9,600. Then, Henry Inc. sold its holdings of Container Corporation bonds on July 2, 2020, for $9,600. a. Record the sale of the debt investment. Note: List multiple debits or credits (when applicable) in alphabetical order. Date Account Name Dr. Cr. July 2, 2020 0 0 0 0 0 0 b. Adjust the Fair Value Adjustment account on December 31, 2020, the company's year-end. Date Account Name Dr. Cr. Dec. 31, 2020 0 0 0
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