Question
On 1/1/20 Stream Corporation purchases a 20 year, $500,000 debt security (bond) at 98%. On 12/31/20 the fair value of the bond is $489,700. Where
On 1/1/20 Stream Corporation purchases a 20 year, $500,000 debt security (bond) at 98%. On 12/31/20 the fair value of the bond is $489,700. Where appropriate Stream Corporation uses straight line amortization of any discounts or premiums. Required : Prepare the necessary 2020 journal entries for this debt investment by Stream Corporation under each following separate classifications;
a. Trading
b. Available for Sale
c. Held to Maturity
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
1st edition
978-0133251579, 133251578, 013216230X, 978-0134102313, 134102312, 978-0132162302
