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Prepare cullumbers journal entries for the purchase

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Question - Cullumber Corporation purchased trading investment bonds for $62,000 at par. At December 31, Cullumber received annual interest of $2,480, and the fair value of the bonds was $59,700.

Required - Prepare Cullumber's journal entries for (a) the purchase of the investment, (b) the interest received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.)

Reference no: EM132524095

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