BE17.4 - Using Excel to Prepare Entries for Debt Investments PROBLEM Student Work Area Required: Provide input into cells shaded in yellow in this template. Use cell references to the Problem area, with mathematical formulas to calculate any _amounts not given. Hendricks Corporation purchased trading investment bonds at par. Purchase price of bonds $ 50,000 The following data was provided by Hendricks at December 31. Prepare Hendricks' jourmal entries for: (a) The purchase of the investment (b) The interest received (c) The fair value adjustment Annual interest received $ 2,000 Fair value of the bonds 47,400 A zero balance exists in the Fair Value Adjustment account before the above activity. Debit Credit |(a) |(b) (c)

BE17.4 - Using Excel to Prepare Entries for Debt Investments PROBLEM Student Work Area Required: Provide input into cells shaded in yellow in this template. Use cell references to the Problem area, with mathematical formulas to calculate any _amounts not given. Hendricks Corporation purchased trading investment bonds at par. Purchase price of bonds $ 50,000 The following data was provided by Hendricks at December 31. Prepare Hendricks' jourmal entries for: (a) The purchase of the investment (b) The interest received (c) The fair value adjustment Annual interest received $ 2,000 Fair value of the bonds 47,400 A zero balance exists in the Fair Value Adjustment account before the above activity. Debit Credit |(a) |(b) (c)

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 1PB: Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, Year 1....

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During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 loss
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