se the financial statement effects template to record the accounts and amounts for the following four transactions involving Loudder Inc. purchases 10,000 bonds with a face value of $1,000 per bond. The bonds are purchased at par for cash and p Loudder receives semi-annual cash interest of $200,000. Year-end fair value of the bonds is $978 per bond. Shortly after year-end, Loudder sells all 10,000 bonds for $970 per bond. se negative signs with answers, if appropriate.
se the financial statement effects template to record the accounts and amounts for the following four transactions involving Loudder Inc. purchases 10,000 bonds with a face value of $1,000 per bond. The bonds are purchased at par for cash and p Loudder receives semi-annual cash interest of $200,000. Year-end fair value of the bonds is $978 per bond. Shortly after year-end, Loudder sells all 10,000 bonds for $970 per bond. se negative signs with answers, if appropriate.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 6PA: Saverin, Inc. produces and sells outdoor equipment. On July 1, 2016, Saverin, Inc. issued 62,500,000...
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![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.
a. Loudder Inc. purchases 10,000 bonds with a face value of $1,000 per bond. The bonds are purchased at par for cash and pay interest at a semi-annual rate of 4%.
b. Loudder receives semi-annual cash interest of $200,000.
c. Year-end fair value of the bonds is $978 per bond.
d. Shortly after year-end, Loudder sells all 10,000 bonds for $970 per bond.
Use negative signs with answers, if appropriate.
Transaction
Loudder purchases bonds.
Loudder receives cash interest.
Bonds year-end fair value is determined.
Loudder sells all bonds
Cash Asset +
Noncash
Assets
Balance Sheet
= Liabilities +
Contrib.
Captial
+
Earned
Capital
Revenues
Income Statement
Expenses
= Net income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe6ea5d89-e8a5-49bd-bebd-c275194a945b%2Fee0d57f7-488c-4e1f-9461-b6c5812ab9b2%2Fo76trfj_processed.png&w=3840&q=75)
Transcribed Image Text: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.
a. Loudder Inc. purchases 10,000 bonds with a face value of $1,000 per bond. The bonds are purchased at par for cash and pay interest at a semi-annual rate of 4%.
b. Loudder receives semi-annual cash interest of $200,000.
c. Year-end fair value of the bonds is $978 per bond.
d. Shortly after year-end, Loudder sells all 10,000 bonds for $970 per bond.
Use negative signs with answers, if appropriate.
Transaction
Loudder purchases bonds.
Loudder receives cash interest.
Bonds year-end fair value is determined.
Loudder sells all bonds
Cash Asset +
Noncash
Assets
Balance Sheet
= Liabilities +
Contrib.
Captial
+
Earned
Capital
Revenues
Income Statement
Expenses
= Net income
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