On April 30, 2018, Aggie Corporation purchased Smith Corporation 10%, 5-year bonds with a face value of
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Question:
On April 30, 2018, Aggie Corporation purchased Smith Corporation 10%, 5-year bonds with a face value of $12,000 at par plus four months of accrued interest. On December 31, 2018, the investment in Smith Corporation bonds has a market value of $12,300. Assume that on February 1, 2019, Aggie sold its investment in Smith Corporation for $12,500. Also assume that the investment is classified as available-for-sale securities
Required:
Prepare the year-end journal entry to record the unrealized gain or loss.
Refer to the Chart of Accounts exact wording of the answer choices for text entries.
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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