Flounder Corporation purchased trading investment bonds for $59,000 at par. At December 31, Flounder received annual interest of $2,360, and the fair value of the bonds was $56,500. Prepare Flounder' journal entries for (a) the purchase of the investment, (b) the interest received, and (c) 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
Flounder Corporation purchased trading investment bonds for $59,000 at par. At December 31, Flounder received annual interest of $2,360, and the fair value of the bonds was $56,500. Prepare Flounder' journal entries for (a) the purchase of the investment, (b) the interest received, and (c) 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Flounder Corporation purchased trading investment bonds for $59,000 at par. At December 31, Flounder received annual interest of $2,360, and the fair value of the bonds was $56,500.
Prepare Flounder'journal entries for (a) the purchase of the investment, (b) the interest received, and (c) 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.)
Prepare Flounder'
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No.
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Account Titles and Explanation
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Debit
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Credit
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|---|---|---|---|
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(a)
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enter an account title
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enter a debit amount
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enter a credit amount
|
|
enter an account title
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enter a debit amount
|
enter a credit amount
|
|
|
(b)
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
|
|
(c)
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
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