Question
On January 1, 2018, Hoosier Company purchased $930,000 of 10% bonds at face value. The bond market value was $980,000 on December 31, 2018. Required:
On January 1, 2018, Hoosier Company purchased $930,000 of 10% bonds at face value. The bond market value was $980,000 on December 31, 2018.
Required:
Prepare the appropriate journal entry on December 31, 2018, 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.)
- Trading securities.
- Securities available for sale.
- Held-to-maturity securities.
Transaction General Journal Debit Credit
1.Record the unrealized holding gain
or loss for trading securities.
2.Record the unrealized holding gain
or loss for securities available for sale
3. Record the unrealized holding gain
or loss for Held-to-maturity securities.
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