Oriole Corporation has municipal bonds classified as a held-to-maturity at December 31, 2020. These bonds have a par value of $835,000, an amortized cost of $835,000, and a fair value of $754,000. The company believes that impairment accounting is now appropriate for these bonds. (a)     Prepare the journal entry to recognize the impairment. (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.) Account Titles and Explanation Debit Credit enter an account title to record the impairment enter a debit amount enter a credit amount enter an account title to record the impairment enter a debit amount enter a credit amount (To record the impairment.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Oriole Corporation has municipal bonds classified as a held-to-maturity at December 31, 2020. These bonds have a par value of $835,000, an amortized cost of $835,000, and a fair value of $754,000. The company believes that impairment accounting is now appropriate for these bonds.

(a)

 
 
Prepare the journal entry to recognize the impairment. (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.)

Account Titles and Explanation
Debit
Credit
enter an account title to record the impairment
enter a debit amount
enter a credit amount
enter an account title to record the impairment
enter a debit amount
enter a credit amount
(To record the impairment.)
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