For Each of the Following Transactions Related to Held-To-Maturity Debt

question 102

Essay

For each of the following transactions related to Held-to-Maturity Debt securities,state the following:
(1)Which account(s)is (are)increased?
(2)Which account(s)is (are)decreased?
(3)What is the net effect on total assets and total equity? This net effect can be increase,decrease,or no net effect.
Transaction:
a.The investment was purchased at $50,000 (face value)plus brokerage fees of $2,000.
b.Semi-annual interest of $1,500 was received.
c.The investment was disposed of at maturity.Cash in the amount of $50,000 was received.

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Definitions:

Watson

Refers to John B. Watson, an American psychologist who established the psychological school of behaviorism.

Observational Learning

A learning process that occurs through watching others and then imitating or modeling the observed behavior.

Bandura

A psychologist known for his work in social learning theory, emphasizing the role of observational learning, imitation, and modeling in behavior.

Watson

Refers to John B. Watson, an American psychologist who established the psychological school of behaviorism, emphasizing the study of observable behavior.