Hendricks Corporation purchased trading investment bonds for $50,000 at par. At December 31, Hendricks received annual interest

Question:

Hendricks Corporation purchased trading investment bonds for $50,000 at par. At December 31, Hendricks received annual interest of $2,000, and the fair value of the bonds was $47,400. Prepare Hendricks’ journal entries for

(a) The purchase of the investment,

(b) The interest received, and

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