On January 1, 2009, Hoosier Company purchased $930,000 of 10% bonds at face value. The bond market value was $980,000 on December 31, 2009.
Required:
Prepare the appropriate journal entry on December 31, 2009, to properly value the bonds assuming the bonds are classified as:
(1.) Trading securities.
(2.) Securities available for sale.
(3.) Held-to-maturity securities.

Question

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The Answer of On January 1, 2009, Hoosier Company purchased $930,000 of 10% bonds at face value. The bond market value was $980,000 on December 31, 2009.
Required:
Prepare the appropriate journal entry on December 31, 2009, to properly value the bonds assuming the bonds are classified as:
(1.) Trading securities.
(2.) Securities available for sale.
(3.) Held-to-maturity securities.

On January 1, 2009, Hoosier Company Purchased $930,000 of 10