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Jeunes (lacks significant impact) Stock C 75,000 68,000 73,000 Stock D 45,000 51,000 Sold at 49,500 53,500 Additional Notes: Bond A is an 8-year bond
Jeunes (lacks significant impact) Stock C 75,000 68,000 73,000 Stock D 45,000 51,000 Sold at 49,500 53,500 Additional Notes: Bond A is an 8-year bond paying 3% annually; face value $100,000, issued at a market yield of 4.5%. It was bought on 1/1/Y1. Bond B is a 10-year bond paying 3.5% and was purchased at face value ($100,000) It was sold on 1/2/Y2. The interest accrued in Y2 is immaterial. Required: 1. Compute the carrying value of each security on the company's balance sheet for both Year 1 and Year 2: Year 1 Year 2 Bond A Bond B E Stock C Stock D 2. Provide the journal entries for each security for activity in Year 2
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