Using the following categories, indicate the effects of the transactions listed in MA-3, assuming the securities are

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Using the following categories, indicate the effects of the transactions listed in MA-3, assuming the securities are available-for-sale. Use + for increase and − for decrease and indicate the amounts.


Data from in MA-3

On January 1, 2024, Brian Company purchased at par $800,000, 6 percent bonds issued by Laura Company to be held as available-for-sale securities. At December 31, 2024, the bonds had a fair value of $775,000. The bond investment was sold on July 1, 2025, for $802,000. Brian Company’s fiscal year ends on December 31. Record (1) the adjustment of the bond investment on December 31, 2024, and (2) the sale of the bonds on July 1, 2025. Ignore interest.

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Financial Accounting

ISBN: 9781264229734

11th Edition

Authors: Robert Libby, Patricia Libby, Frank Hodge

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