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Journal entries for 1/1/25 1. entry to record purchase of bonds 2. entry to recored purchase of stocks Statement of Problem On January 1. 2015,
Journal entries for 1/1/25
1. entry to record purchase of bonds
2. entry to recored purchase of stocks
Statement of Problem On January 1. 2015, the XYZ company purchase the following to Available for Sale Investments 1) The bonds of the ABC company, with a face value of $100,000, a nominal rate of 5%, a yield rate of 7% and a 3 year term. The bonds pay interest on January 1 of each year. 2) Stock in the Cozy Corporation. These shares were purchased at a price of $75,000. During the following 2 years, the fair market values of these investments were as follows: Bonds:1/1/16- 35,000; 1/1/17- $89,000 Stocks:1/1/16- $96,000; 1/1/17- $1,500 11. for the hands as well as allStep by Step Solution
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