Wildhorse Corporation purchased trading investment bonds for $62,000 at par. At December 31, Wildhorse received annual inter of $2,480, and the fair value of the bonds was $59,700. Prepare Wildhorse' journal entries for (a) the purchase of the investment, (b) the interest received, and (c) the fair value adjustmen (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.)
Wildhorse Corporation purchased trading investment bonds for $62,000 at par. At December 31, Wildhorse received annual inter of $2,480, and the fair value of the bonds was $59,700. Prepare Wildhorse' journal entries for (a) the purchase of the investment, (b) the interest received, and (c) the fair value adjustmen (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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Wildhorse Corporation purchased trading investment bonds for $62,000 at par. At December 31, Wildhorse received annual interest
of $2,480, and the fair value of the bonds was $59,700.
Prepare Wildhorse' 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
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