Date Account Titles and Explanation Debit Credit SUPPORT Blossom Company purchased, on January 1, 2025, as an available-for-sale security. $88,000 of the 12%, 5-year bonds of Richetti Corporation for $81.958, which provides an 14% return Prepare Blossom's journal entries for (a) the purchase of the investment, (b) the receipt of annual interest and discount amortization and (c) the year-end fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) The bonds have a year-end fair value of $83,600. Assume effective-interest amortization is used. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Round answers to 0 decimal places, es 1.225) Date Account Titles and Explanation Debit Credit SUPPORT

Date Account Titles and Explanation Debit Credit SUPPORT Blossom Company purchased, on January 1, 2025, as an available-for-sale security. $88,000 of the 12%, 5-year bonds of Richetti Corporation for $81.958, which provides an 14% return Prepare Blossom's journal entries for (a) the purchase of the investment, (b) the receipt of annual interest and discount amortization and (c) the year-end fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) The bonds have a year-end fair value of $83,600. Assume effective-interest amortization is used. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Round answers to 0 decimal places, es 1.225) Date Account Titles and Explanation Debit Credit SUPPORT

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 3MC: On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9%...

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On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000
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