Question: Assume the same information as in E14-3 except that the securities are classified as available-for-sale. The fair value of the bonds at December 31 of

Assume the same information as in E14-3 except that the securities are classified as available-for-sale. The fair value of the bonds at December 31 of each year-end is as follows.

Instructions
(a) Prepare the journal entry at the date of the bond purchase.
(b) Prepare the journal entries to record the interest received and recognition of fair value for 2008.
(c) Prepare the journal entry to record the recognition of fair value for2009.

2008 2009 2010 $320.500 $309,000 $308,000 2011 2012 $310,000 $300,000

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a January 1 2008 AvailableforSale Securities 32274444 Cash 32274444 b December 31 2008 Cash 3600... View full answer

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