The company purchased the following securities during Year 1: In Year 2, the company reclassified both of
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In Year 2, the company reclassified both of these securities. Security A was reclassified as held to maturity; the market value of security A at the time of the reclassification was $8,000. Security B was reclassified as available for sale; the market value of security B at the time of the reclassification was $7,100. Make the journal entries necessary to record both of thesereclassifications.
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Market Value (Dec. 31, Year 1) Security Classification Avallable for sale Held to maturity Cost $7,500 9,000 $6,000 2,000
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Security A Investment Securities x Held to Maturity 8000 Market Adjustment ...View the full answer
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Related Book For
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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