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Marshall Ltd. purchased $0.924 million of 10-year, 4% bonds on July 1, 2021, at 106.7 (this means 106.7% of face value). Interest is received semi-annually
Marshall Ltd. purchased $0.924 million of 10-year, 4% bonds on July 1, 2021, at 106.7 (this means 106.7% of face value). Interest is received semi-annually on January 1 and July 1. The bonds were trading at 105.2 at December 31, 2021. Marshall intends to trade the bonds in the near future and is using the fair value through profit or loss model. (a) Your answer is correct. Record the purchase of the bonds. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation July 1 Trading Investments (b) Cash eTextbook and Media List of Accounts Debit Credit 985908 Attempts: 1 of 3 used Record any required adjusting journal entries at December 31. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Dec. 31 (To accrue interest) Dec. 31 (To record adjustment to fair value) Debit Credit
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