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Pronghorn Company invests $ 9 , 6 0 0 , 0 0 0 in 6 % fixed rate corporate bonds on January 1 , 2
Pronghorn Company invests $ in fixed rate corporate bonds on January All the bonds are classified as availableforsale and are purchased at par. At yearend, market interest rates have declined, and the fair value of the bonds is now $ Interest is paid on January
Prepare journal entries for Pronghorn Company to a record the transactions related to these bonds in assuming Pronghorn does not elect the fair option; and b record the transactions related to these bonds in assuming that Pronghorn Company elects the fair value option to account for these bonds. List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.
No
Date
Account Titles and Explanation
Debit
Credit
a
To record interest revenue
To record fair value adjustment
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