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:

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