Describe Debt Investments to Be Held to Maturity.

Q: Explain the reporting of long-term liabilities, such as bonds payable and notes payable.

A: Liabilities - Liabilities are the obligation on the organization to be repayable in a year or more…

Q: Define bonds payable.

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: When should debt security be classified as held-to-maturity?

A: Debt: A debt security should be classified as held to maturity only if the company has both the…

Q: Identify investments as an investment in either debt (D) securities or equity (E) securities.…

A: Debt securities are raised by the firm as debt in order to finance projects whereas, equity…

Q: Explain restructuring (of debt terms)

A: Debt restructuring It is a system that organizations use to get away from the risk of default on…

Q: Identify investments as an investment in either debt (D) securities or equity (E) securities. U.S.…

A: Debt securities: Debt securities are financial assets that entitle their owners to stream interest…

Q: Explain accounting for investments in equity securities.

A: An equity security is an investment in stock issued by another company. The accounting for an…

Q: How are held-to-maturity investments reported on the financial statements?

A:

Q: Explain accounting for investment in bonds.

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: Define  debt investment.

A: Debt Investment: Debt Investment considered as Lending money on loan to the issuing entity. The main…

Q: Define capital gains yield (on a bond)

A: The formula to compute capital gain yield as follows:

Q: Explain how trading debt securities are accounted forand reported.

A: Trading securities: It refers to the buying and selling of short-term debt or equity securities to…

Q: Describe the Debt Investments Classified as Available-for-Sale Securities.

A: Available for sale securities are generally stated at their fair values. These types of securities…

Q: Define the terms "debt security" and "equity security." Include comparisons and contrasts in your…

A: Introduction: Securities: To raise money from the public or private markets, securities are the…

Q: How are debt and equity securities reported?

A: Investment securities are bought by individuals for the primary purpose of investment and long-term…

Q: Where and how are bonds proceeds recorded?  Bond interest and bond principal payments?

A: Bond is a financial instrument issued by the company to raise funds for the growth and development…

Q: Demonstrate how to identify and account for debt investments classified for reporting purposes as…

A: A debt security is a type of investment tool in which the bonds are issued by a corporation or the…

Q: Where are debt investments classed as trading securities, available-for-sale securities, and…

A: Secured debt obligations: The borrowed money must be returned and has a specified amount, maturity…

Q: On a balance sheet, what valuation must be reported for short-term debt investments in trading…

A: Short term debt investments are those debt funds or mutual funds that are obtained for a short…

Q: Describe the accounting for a debt restructuring.

A: Definition:   Debt restructuring is a process by which the company may avoid the risk of default on…

Q: Which one of the following securities is collateralized (secured) by specific assets? debenture…

A: Mortgage bond is collateralized (secured) by specific assets.

Q: Explain the Debt Investments Classified as Trading Securities.

A: Debt:   A debt is an obligation that requires on entity called the debtor to pay back a borrowed sum…

Q: Explain how to account for the impairment of held-to-maturity debt security.

A: Held to maturity securities are those securities which are purchased to be held till maturity…

Q: Compute bond proceeds, amortizing premium by interest method, and interest expense

A:

Q: Investments in debt securities are classified into the following categories according to…

A: Investment in debt securities: Purchase of debt securities of another corporation.

Q: Define Issuance of Equity Securities.

A: Investments:   Companies invest in stocks and bonds of other companies or governmental entity to…

Q: Describe the process to record a bond a face value, discount value and premium?

A: Bonds payable are financial instruments. It representing a company’s commitment to pay back a…

Q: Describe financial instruments and investment derivatives,

A: Financial instrument: A financial instrument is a monetary agreement among two parties, which can be…

Q: Explain the difference(s) between investments in equity securities classified as current assets…

A:

Q: Describe reasons for invest in debt or equity securities.

A: Securities: These are the financial assets that are traded in the financial or secondary or…

Q: Identify the major categories of long-term debt financing

A: Long-term debt is the debt that has its maturity which exceeds 1 year. Companies require long term…

Q: Prepare a bond amortization schedule.

A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…

Q: How do premiums and discounts on long-term debt securities affect interest expense?

A: Long term debts are used by the large organisations to raise the fund and utilise them for various…

Q: describe the characteristics and terminology of bonds payable

A: Definition of Bonds payable: Bonds are issued by Government , corporations etc.

Q: Demonstrate how to identify and account for debt investments classified for reporting purposes as…

A: Debt securities: The financial instruments which are bought by investors, or corporations, or mutual…

Q: Identify the three classes of debt investments and the three classes of equity investments.

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: Identify investments as an investment in either debt (D) securities or equity (E) securities. Apple…

A: Debt securities are those securities which provides rights of interest payments to the holders of…

Q: On a balance sheet, what valuation must be reported for debt securities classified as…

A: Balance sheet: A balance sheet prepared after the income statement represented organization assets,…

Q: Define secured debt

A: The term debt refers to the money taken out a loan from individuals, financial institutions, or…

Q: Where on the asset side of the balance sheet are debtinvestments classified as trading securities,…

A:

Q: Distinguish between equity and debt securities.

A: Equity and debts are the most important forms for fund raising. Equity refers to the investment…

Q: Identify and describe the principal kinds of debt securities.

A: Business needs funds to operate the activities. Issuing securities is one of the ways to collect the…

Q: Trading bond investment are reported at

A: Investments held for trade are recorded at Fair value and their fair value is assessed and adjusted…

Types of Money Market Instruments