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Worldwide Enterprises purchased a bond on June 30 of the current year for $100,000 and classified the investment as trading debt. The market value of the trading debt investment at year-end is $102,500. The adjustment is

Worldwide Enterprises purchased a bond on June 30 of the current year for $100,000 and classified the investment as trading debt. The market value of the trading debt investment at year-end is $102,500. The adjustment is

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Worldwide Enterprises purchased a bond on June 30 of the current year for $100,000 and classified the investment as trading debt. The market value of the trading debt investment at year-end is $102,500. The adjustment is subtracted from the Trading Debt Investment account reported as a $2,500 unrealized holding gain in the Other Income and (Expenses) section of the income statement not reported on the income statement because the market value is greater than the cost reported as a separate component of stockholders' equity
Transcribed Image Text:Worldwide Enterprises purchased a bond on June 30 of the current year for $100,000 and classified the investment as trading debt. The market value of the trading debt investment at year-end is $102,500. The adjustment is subtracted from the Trading Debt Investment account reported as a $2,500 unrealized holding gain in the Other Income and (Expenses) section of the income statement not reported on the income statement because the market value is greater than the cost reported as a separate component of stockholders' equity
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