Provide the journal entries necessary to record topsail

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On January 2, 20X2, Topsail purchased 50, $1,000 bonds issued by Charlie Company. The bonds pay Interest on December 31, at 6% and mature in three years. The bonds were purchased for $47,423 to yield a return of 8%, Topsail's management has the intent to hold the bonds for two years. On December 31, 20X2, the bonds have a fair value of $49,100. On February 1, 20X3, Topsail sold half of the bonds for $24,900.

Required:

Problem 1: Provide the journal entries necessary to record Topsail's investment in Charlie Company's bonds from January 2, 20X2 to February 1, 20X3. Your entry to record the sale on February 1, 20X3 should include a reclassification.

Reference no: EM132844307

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