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REQUIRED . Julie Company purchased bonds with a total face value $900.000 from Kipple Company on February 1. 2018 a...


REQUIRED . Julie Company purchased bonds with a total face value $900.000 from Kipple Company on February 1. 2018 at 100 (quo
REQUIRED . Julie Company purchased bonds with a total face value $900.000 from Kipple Company on February 1. 2018 at 100 (quote) and pay interest every February 1 The bonds are 9 %, $1,000 bonds December 31 is fiscal year end On December 31, the bonds have a market value reflecting a 97 quote The bonds are a trading security on Julie's books Present ALL iounal entries related to the bond investment required by Julie in 2018
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Journal entries:
Date Account Titles and Explanation Debit Credit
Feb 1 2018 Bonds in Kipple company 900000
Cash 900000
(Bonds purchased)
Dec 31 2018 Interest receivable 74250
Interest revenue 74250
(900000*9%*11/12)
(Interest for 11 month accrued)
Dec 312018   Unrealized loss on trading securities 27000
Bonds in Kipple company 27000
[900000-(900000/100)*97]
(Change in market value recorded)
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