On January 1, 2018, Hoosier Company purchased $928,000 of 10% bondsat face value

Question

On January 1, 2018, Hoosier Company purchased $928,000 of 10% bondsat face value The bond market value was $979,000 on December 31, 2018. Required Prepare the appropriate journal entry on December 31, 2018, 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.) 1. Trading securities 2 Securities available for sale 3. Held-to-maturity securities. View transaction list Journal entry worksheet Record the unrealized holding gain or loss for trading securities Note: Enter debits before credits. General Journal Debit Credit

Explanation / Answer

1.

2.

3.

No journal entry required

Date Particulars Debit Credit December 31, 2018 Valuation Allowance (trading securities) 51,000 Unrealized gain 51,000

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