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On January 1, 2016, Hoosier Company purchased $932,000 of 10% bonds at face value. The bond market value was $981,000 on December 31, 2016. Required:
On January 1, 2016, Hoosier Company purchased $932,000 of 10% bonds at face value. The bond market value was $981,000 on December 31, 2016.
Required: Prepare the appropriate journal entry on December 31, 2016, to properly value the bonds assuming the bonds are classified as: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Trading securities.
2. Securities available for sale.
3. Held-to-maturity securities.
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