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On July 1, 2021, Hoosier Company purchased $930,000 of 10% bonds at discount. The market interest rate is 12% The bonds will last for 3
On July 1, 2021, Hoosier Company purchased $930,000 of 10% bonds at discount. The market interest rate is 12% The bonds will last for 3 years, and pay interest semiannually on December 31st and June 30th. The bond market value was $980,000 on December 31, 2021. Required: Prepare the appropriate journal entry on December 31, 2021, to properly value the bonds assuming the bonds are classified as: (1.) Trading securities. (2.) Securities available-for-sale. (3.) Held-to-maturity securities.
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