On January 1,2016,Hoosier Company purchased $930,000 of 10% bonds at face value.The bond market value was $980,000 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:
(1. )Trading securities.
(2. )Securities available for sale.
(3. )Held-to-maturity securities.

Question

Quizplus · Accepted Answer

The Answer of On January 1,2016,Hoosier Company purchased $930,000 of 10% bonds at face value.The bond market value was $980,000 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:
(1. )Trading securities.
(2. )Securities available for sale.
(3. )Held-to-maturity securities.

On January 1,2016,Hoosier Company Purchased $930,000 of 10% Bonds at Face