Question
URGENT!!! HELP NEEDED Git-X, Inc. maintained a large investment in debt securities (e.g., Bonds) valued at approximately $42 billion as of the beginning of the
URGENT!!! HELP NEEDED
Git-X, Inc. maintained a large investment in debt securities (e.g., Bonds) valued at approximately $42 billion as of the beginning of the year. During the year, the debt securities produced investment income (interest income) totaling $2.5 billion. At year-end, the portfolio of debt securities had appreciated to $45.5 billion.
Required:
a. Prepare the journal entries to record the year-end adjusting entries assuming that the debt portfolio is:
- Classified as trading securities
- Classified as available-for-sale securities
b. Prepare the journal entry to record the interest earned (assume all interest is collected).
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
16th edition
978-1259307416
