On January 1, 2021, Hoosier Company purchased $916,000 of 10% bonds at face value. The bond...

On January 1, 2021, Hoosier Company purchased $916,000 of 10% bonds at face value. The bond market value was $973,000 on December 31, 2021. Required: Prepare the appropriate journal entry on December 31, 2021, to properly value the bonds assuming the bonds are classified as:

(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Trading securities. Securities available-for-sale. Held-to-maturity securities

Solutions

Expert Solution

Trading securities

	Debit	Credit
Fair value adjustment	57,000
Unrealized holding gain or loss - NI		57,000

Securities available for sale

	Debit	Credit
Fair value adjustment	57,000
Unrealized holding gain or loss - OCI		57,000

Held to maturity securities

	Debit	Credit
No entry

ekkarill92 answered 2 years ago

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