Presented below is information taken from a bond investment amortization schedule with related fair values provided. These

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Presented below is information taken from a bond investment amortization schedule with related fair values provided. These bonds are classified as available-for-sale.

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Instructions

a. Indicate whether the bonds were purchased at a discount or at a premium.

b. Prepare the adjusting entry to record the bonds at fair value at December 31, 2020. The Fair Value Adjustment account has a debit balance of $1,000 prior to adjustment.

c. Prepare the adjusting entry to record the bonds at fair value at December 31, 2021.

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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1119503668

17th edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel

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