Bonita Corporation purchased trading investment bonds for $51,000 at par. At December 31, Bonita received...
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Accounting
Bonita Corporation purchased trading investment bonds for $51,000 at par. At December 31, Bonita received annual interest of $2,040, and the fair value of the bonds was $48,100. Prepare Bonitas 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.)
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