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The information below relates to Wynn Corporation's investments classified as trading securities in 2017:

 1/1/17    Purchased $100,000 par value of Barr Company bonds at 98 with an annual yield of 10%. The bonds pay interest annually on 12/31. The annual interest rate is 9%.  


9/5/17     Purchased 3,200 shares of Pine, Inc. common stock for $30 per share. 


12/31/17   Received $9,000 interest for investments in Barr Company bonds for 2017 (note: the discount of the bond investments should be amortized using the effective interest method when recording the receipt of $9,000 interest).


12/31/17   The market prices of the investments at 12/31/2017 were: Pine Inc. common stock $25 per share and Barr company bonds, 99.  The fair value adjustment account balance was a credit of $300 prior to the fair value adjustment on 12/31/2017.


7/2/18       Wynn sold half of Pine, Inc. common stock for $50,000.


Required:

a. Prepare journal entries for the transactions occurred in 2017 (i.e., transactions on 1/1, 9/5 and 12/31) and make the appropriate entry to apply the fair market valuation for these investments on 12/31/2017.


b. Record the transaction of 7/2/2018

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Subject: Accounting, Business
The information below relates to Wynn Corporation's investments classified as trading securities in 2017: 1/1/17Purchased $100,000 par value of Barr...
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