Assume the same information as in E17-3B except that the securities are classified as available-for-sale. The fair

Question:

Assume the same information as in E17-3B except that the securities are classified as available-for-sale. The fair value of the bonds at December 31 of each yearend is as follows.

2014 ........ $430,000

2015 ........425,000

2016 ........420,000

2017 ........450,000

2018 ........470,000

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 2014.

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Intermediate Accounting

ISBN: 978-1118147290

15th edition

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

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Question Posted: Jun 07, 2013 10:25 AM

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Assume the same information as in E17-3B except that the securities are classified as available-for-sale. The fair

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a January 1 2014 AvailableforSale Securities428938 Cash 428638 b June 30 2014 ...View the full answer

Intermediate Accounting

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