E9-29 Marketable Debt Securities Use the financial statement effects template to record the accounts and...
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Accounting
E9-29 Marketable Debt Securities
Use the financial statement effects template to record the accounts and amounts for the following four transactions involving investments in marketable debt securities classified as available-for-sale securities.
Purchased 5,000 bonds with a face value of $1,000 per bond. The bonds are purchased at par for cash and pay interest at an annual rate of 4%.
Received semi-annual cash interest of $100,000.
Year-end fair value of the bonds if $978 per bond.
Shortly after year-end, Loudder sold all 5,000 bonds for $970 per bond.
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