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On January 2, 20x2, Topsail purchased 100, $1,000 bonds issued by Charlie Company. The bonds pay interest on Decerber 31, at 9% and mature in
On January 2, 20x2, Topsail purchased 100, $1,000 bonds issued by Charlie Company. The bonds pay interest on Decerber 31, at 9% and mature in three years. The bonds were purchased for $97,513 to yield a return of 10%. Topsail's management has the intent to hold the bonds for two years. On December 31, 20X2, the bonds have a fair value of $99,100.
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provide the journal entries necessary to record Topsail's investment in Charlie Company's bonds from January 2, 20X2 to January 14, 20X3. Your entry to record the sale on January 14, 20X3 should include a reclassification adjustment Provide supporting calculations via your uploaded scratch paper
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