Question: On January 1 Year 5 Ornate Company Ltd purchased US 2 000 000

On January 1, Year 5, Ornate Company Ltd. purchased US$2,000,000 of the bonds of the Gem Corporation. The bonds were trading at par on this date, pay interest at 9% each December 31, and mature on December 31, Year 7. The following Canadian exchange rates were quoted during Year 5:
Prepare the journal entries for Year 5 assuming that the investment in bonds is
(a) Held to maturity,
(b) Held for trading, and
(c) Available for sale.

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  • CreatedJune 09, 2015
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