14. On January 1, 2016 Hoosier Company purchased S932.000 of 10% bonds at face v

Question

14. On January 1, 2016 Hoosier Company purchased S932.000 of 10% bonds at face value. The bond market value was $981,000 on December 31, 2016. Required: Prepare the appropriate journal entry on December 31, 2016, to properly value the bonds assuming the bonds are dlassified 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. View transaction list Journal entry worksheot Record the unrealized holding gain or loss for trading securities Note: Enter debits before credits General Journal Debit Credit Record entry Clear entry View general journal sC : FI

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit 2016 dec 31 Trading securities a/c 49000      Unrealized holding gains on trading securities 49000 (To record adjusting entry) 2016 dec 31 Available for sale securities a/c 49000      Unrealized holding gains on available for sale securities 49000 (To record adjusting entry) 2016 dec 31                     No entry

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