MA-4 (Static) Recording a Bond Investment Held as Trading Securities LO A-1 On January 1,...
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MA-4 (Static) Recording a Bond Investment Held as Trading Securities LO A-1
On January 1, 2018, Brian Company purchased at par $800,000, 6 percent bonds issued by Laura Company to be actively traded. At December 31, 2018, the bonds had a fair value of $775,000. The bond investment was sold on July 1, 2019, for $802,000. Brian Companys fiscal year ends on December 31. Record (1) the adjustment of the bond investment on December 31, 2018, and (2) the sale of the bonds on July 1, 2019. Ignore interest. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Recognize the fair value of investments $775,000 on December 31, 2018.
2. Recognize the fair value of investments on July 01, 2019.
3. Recognize the cash received from sale of investments on July 01, 2019.
Date/General Journal/Debit/Credit/
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