Martinez Corporation purchased trading investment bonds for $43,000 at par. At December 31, Mart $1.720, and the fair value of the bonds was $40,200. Prepare Martinez' journal entries for (a) the purchase of the investment. (b) the interest received, and (Assume a zero balance in the Fair Value Adjustment account.) (List all debit entries before credit entries. automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Em enter O for the amounts)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Martinez Corporation purchased trading investment bonds for $43,000 at par. At December 31, Martinez received annual interest of
$1,720, and the fair value of the bonds was $40,200.
Prepare Martinez 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.) (List all debit entries before credit entries. 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 o for the amounts)
No. Account Titles and Explanation
(a)
(b)
(c)
Debit
Credit
F
Transcribed Image Text:Martinez Corporation purchased trading investment bonds for $43,000 at par. At December 31, Martinez received annual interest of $1,720, and the fair value of the bonds was $40,200. Prepare Martinez 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.) (List all debit entries before credit entries. 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 o for the amounts) No. Account Titles and Explanation (a) (b) (c) Debit Credit F
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