Adam Corporation purchased 1,000 bonds of Quick Corporation in 2018 for $800 per bond and classified it as available for sale. The value of the holding was $400 per bond on December 31, 2019, and $300 per bond on December 31, 2020. In 2021, Adam sold all its Quick bonds at $350 per bond. What would the amount record be upon sale? a) A debit of $500,000 b) A credit of $500,000 c) A debit of $450,000 d) A credit of $450,000
Adam Corporation purchased 1,000 bonds of Quick Corporation in 2018 for $800 per bond and classified it as available for sale. The value of the holding was $400 per bond on December 31, 2019, and $300 per bond on December 31, 2020. In 2021, Adam sold all its Quick bonds at $350 per bond. What would the amount record be upon sale? a) A debit of $500,000 b) A credit of $500,000 c) A debit of $450,000 d) A credit of $450,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Adam Corporation purchased 1,000 bonds of Quick Corporation in 2018 for $800 per
bond and classified it as available for sale. The value of the holding was $400 per
bond on December 31, 2019, and $300 per bond on December 31, 2020. In 2021,
Adam sold all its Quick bonds at $350 per bond. What would the amount record be
upon sale?
a) A debit of $500,000
b) A credit of $500,000
c) A debit of $450,000
d) A credit of $450,000
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