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Dove Company purchased bonds with a face value of $100,000 issued by Rock Enterprises. The bonds had a stated interest rate of 8%, a market rate of 6%, semiannual interest payments and were purchased on June 30, 2006, exactly three years before maturity date, at 105. DOVE classified the securities as available for sale and the market price on Dec 31, 2006 would be 104,400. Make the journal entries for Dec 31, 2006 (recording interest and valuation)

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M988846

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