Question
Marin Corporation purchased trading investment bonds for $65,000 at par. At December 31, Marin received annual interest of $2,600, and the fair value of the
Marin Corporation purchased trading investment bonds for $65,000 at par. At December 31, Marin received annual interest of $2,600, and the fair value of the bonds was $62,200. Prepare Marin' journal entries for
(a) the purchase of the investment,
(b) the interest received,
(c) the fair value adjustment.
(Assume a zero balance in the Fair Value Adjustment account.)
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Solution Pass the entry for purchase of investment as shown below Greneral Journal patiada...
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
