On January 1, 2016, Hoosier Company purchased $912,000 of 10% bonds at face value. The bond market

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On January 1, 2016, Hoosier Company purchased $912,000 of 10% bonds at face value. The bond market value was $971,000 on December 31, 2016.

Required:

Prepare the appropriate journal entry on December 31, 2016, 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.

Related Book For answer-question

Fundamental Financial Accounting Concepts

ISBN: 978-0078025907

9th edition

Authors: Thomas Edmonds, Christopher Edmonds

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Posted Date: Sep 06, 2018 03:12 AM

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On January 1, 2016, Hoosier Company purchased $912,000 of 10% bonds at face value. The bond market

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S No Date Accounts Dr Cr 1 Dec 312016 Fair value adjustment bonds 5900000 Net realized holdin... View the full answer

Fundamental Financial Accounting Concepts

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