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On January 1, 2017, Skysong Company purchased 11% bonds, having a maturity value of $274,000, for...

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Accounting

On January 1, 2017, Skysong Company purchased 11% bonds, havinga maturity value of $274,000, for $295,314.87. The bonds providethe bondholders with a 9% yield. They are dated January 1, 2017,and mature January 1, 2022, with interest received on January 1 ofeach year. Skysong Company uses the effective-interest method toallocate unamortized discount or premium. The bonds are classifiedas available-for-sale category. The fair value of the bonds atDecember 31 of each year-end is as follows.

2017$293,0002020$284,700
2018$283,7002021$274,000
2019$282,800
QPrepare the journal entry to record the recognition of fairvalue for 2018.
Dec 31, 2018Unrealized Holding Gain or Loss-Equity?
Fair Value Adjustment?   

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