On February 18, 2018, Union Corporation purchased $1,139,000 of IBM bonds. Union will hold the bonds indefinitely, and may sell them if their increases sufficiently. On December 31, 2018, and December 31, 2019, the market value of the bonds was $1,105,000 and $1,156,000, respectfully. Prepare the adjusting entry for December 31, 2018 and 2019.

On February 18, 2018, Union Corporation purchased $1,139,000 of IBM bonds. Union will hold the bonds indefinitely, and may sell them if their increases sufficiently. On December 31, 2018, and December 31, 2019, the market value of the bonds was $1,105,000 and $1,156,000, respectfully. Prepare the adjusting entry for December 31, 2018 and 2019.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1RE

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