Hendricks Corporation purchased trading investment bonds for $52,550 at par. At

Question

Hendricks Corporation purchased trading investment bonds for $52,550 at par. At December 31, Hendricks received annual interest of $2,490, and the fair value of the bonds was S49,980. Prepare Hendricks' journal entries for the purchase of the investment, the interest received, and the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Explanation / Answer

No. Account Titles Debit Credit (a) Investment A/c 52550 Cash / Bank 52550 (b) Cash / bank 2490 Interest 2490 c Profit and Loss A/c 2570 Investment A/c 2570

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.