Chapter A, Problem 1AP

1.

To determine

Identify the accounts that are effected in the books of the investor, by the purchase of bonds held-to-maturity on January 1

2.

To determine

Identify the accounts that are effected in the books of the investor, by the receipt of interest on June 30, from the investment in bonds held-to-maturity

3.

To determine

Explain whether Corporation S should record the adjusting entries for changes in fair value (year-end) for the investment in bonds held-to-maturity