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Prepare hendricks journal entries for purchase of investment

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Reference no: EM131788062

Question - Hendricks Corporation purchased trading investment bonds for $50,000 at par. At December 31, Hendricks received annual interest of $2,000, and the fair value of the bonds was $47,400.

Required: Prepare Hendricks journal entries for:

(a) the purchase of the investment

(b) the interest received

(c) the fair value adjustment

Reference no: EM131788062

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