On January 1, Seahawk Company purchased $770,000 of 12% bonds at face value. At December 31, the market value of the bonds was $810,000.
Required:
Prepare the fair value adjusting entry on December 31 of the current year assuming that the bonds are classified as:
1. Trading securities
2. Available-for-sale securities
3. Held-to-maturity securities

Question

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The Answer of On January 1, Seahawk Company purchased $770,000 of 12% bonds at face value. At December 31, the market value of the bonds was $810,000.
Required:
Prepare the fair value adjusting entry on December 31 of the current year assuming that the bonds are classified as:
1. Trading securities
2. Available-for-sale securities
3. Held-to-maturity securities

On January 1, Seahawk Company Purchased $770,000 of 12% Bonds