journal entries

Debt Investments Held-to-Maturity Imperial Irrigation District Bonds - 40, $1.000, 10-year bonds were purchased on January 2, 20X1. The bonds pay interest annually on December 31: at a stated rate of 8%. The bonds were purchased for $35,080 to provide an effective yield of 10%. The bonds had a fair value of $35,800 on December 31, 20X1. Due to unforeseen working capital requirements, St. Claire's management decided to reclassify, as trading securities, the imperial Irrigation District bonds on December 31' le bonds had a fair value of $36,800 ($920 per bond) on that date. Debt Investments Held-to-Maturity Imperial Irrigation District Bonds - 40, $1.000, 10-year bonds were purchased on January 2, 20X1. The bonds pay interest annually on December 31: at a stated rate of 8%. The bonds were purchased for $35,080 to provide an effective yield of 10%. The bonds had a fair value of $35,800 on December 31, 20X1. Due to unforeseen working capital requirements, St. Claire's management decided to reclassify, as trading securities, the imperial Irrigation District bonds on December 31' le bonds had a fair value of $36,800 ($920 per bond) on that date