On January 1, 2018, Hoosier Company purchased $930,000 of 10% bonds at face value. The bond market
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Question:
On January 1, 2018, Hoosier Company purchased $930,000 of 10% bonds at face value. The bond market value was $980,000 on December 31, 2018.
Required:
Prepare the appropriate journal entry on December 31, 2018, to properly value the bonds assuming the bonds are classified as:
(1.) Trading securities.
(2.) Securities available for sale.
(3.) Held-to-maturity securities.
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas
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