On January 1, 2018, Hoosier Company purchased $948,000 of 10% bonds at face value. The bond...

 

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On January 1, 2018, Hoosier Company purchased $948,000 of 10% bonds at face value. The bond market value was $989,000 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: (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) 1. Trading securities. 2. Securities available for sale. 3. Held-to-maturity securities. View transaction list No 1 2 3 Transaction 1 2 View journal entry worksheet 3 General Journal Fair value adjustment Unrealized holding gain-NI Fair value adjustment Unrealized holding gain-OCI No journal entry required Debit 41,000 41,000 Credit 41,000 41,000 On January 1, 2018, Hoosier Company purchased $948,000 of 10% bonds at face value. The bond market value was $989,000 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: (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) 1. Trading securities. 2. Securities available for sale. 3. Held-to-maturity securities. View transaction list No 1 2 3 Transaction 1 2 View journal entry worksheet 3 General Journal Fair value adjustment Unrealized holding gain-NI Fair value adjustment Unrealized holding gain-OCI No journal entry required Debit 41,000 41,000 Credit 41,000 41,000

Answer rating: 100% (QA)

Answer Solution In the Books of Hoosler Company As on 31st December 2018 SrNo Date Particulars Amoun... View the full answer