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Baldwin Inc is an athletic footware company that began operations on January 2014 The following transactions relate to debt investments acquired by Baldwin Inc which has a fiscal year ending on

Baldwin Inc. is an athletic footware company that began operations on January 1, 2014. The following transactions relate to debt investments acquired by Baldwin Inc., which has a fiscal year ending on December 31: 2014 Mar. 1. Purchased $50,000 of Buncombe Co. 6%, 10-year bonds at their face amount plus accrued interest of $250. The bonds pay interest semiannually on February 1 and August 1. 16. Purchased $84,000 of French Broad 5%, 15-year bonds at their face amount plus accrued interest of $175. The bonds pay interest semiannually on March 1 and September 1. Aug. 1. Received semiannual interest on the Buncombe Co. bonds. 31. Sold $20,000 of Buncombe Co. bonds at 99 plus accrued interest of $100. Sept. 1. Received semiannual interest on the French Broad bonds. Dec. 31. Accrued $750 interest on the Buncombe Co. bonds. 31. Accrued $1,400 interest on the French Broad bonds. 2015 Feb. 1. Received semiannual interest on the Buncombe Co. bonds. Mar. 1. Received semiannual interest on the French Broad bonds. Instructions 1. Journalize the entries to record these transactions. 2. If the bond portfolio is classified as available for sale, what impact would this have on financial statement disclosure?

Jun 16 2020 View more View Less

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