Journal Entry

Honda made all necessary adjusting journal entries related to the investment in Target bonds. On this date, the bonds issued by Target were selling for 106. The relevant valuation account had an unadjusted general ledger balance of $10 dr. Honda made all necessary adjusting journal entries related to the investment in Nissan stock. On this date, the relevant valuation account had an unadjusted general ledger balance of $6 cr. Nissan reported earnings of $1,000 for YR01 and its common stock closed at $9 per common share. Nissan has no preferred stock outstanding.