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Question - Hendricks Corporation purchased trading investment bonds for $50,000 at par. At December 31, Hendricks received annual interest of $2,000, and the fair value of the bonds was $47,400.

Required: Prepare Hendricks journal entries for:

(a) the purchase of the investment

(b) the interest received

(c) the fair value adjustment

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92596744
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