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Stellar Corporation purchased trading investment bonds for $42,000 at par. At December 31, Stellar received...

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Accounting

Stellar Corporation purchased trading investment bonds for $42,000 at par. At December 31, Stellar received annual interest of
$1,680, and the fair value of the bonds was $39,400.
Prepare Stellar' 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.)(List all debit entries before credit entries. Credit account titles are
automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and
enter 0 for the amounts.)
No. Account Titles and Explanation
Debit
Credit
(a)
(b)
(c)
image

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