Question
On January 1, 2018, Rushing Company purchased $65,000 of 10% bonds at face value. The bonds pay interest semiannually on January 1 and July 1.
On January 1, 2018, Rushing Company purchased $65,000 of 10% bonds at face value. The bonds pay interest semiannually on January 1 and July 1. The fair value of the bonds at December 31, 2018 is $107,000. There is no balance in the Fair Value adjustment account.
Prepare the appropriate journal entries for the bonds for 2018 assuming the financial statements are prepared on a calendar year basis and the bonds are classified as:
- Trading securities
- Available for sale securities
- Held to maturity securities
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
13th edition
978-1-119-4110, 1119411483, 9781119411017, 978-1119411482
