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

question 92

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.Semiannual interest of $1,500 was received.
c.The investment was disposed of at maturity.Cash in the amount of $50,000 was received.
$$\begin{array} { | l | l | l | l | } \hline \text { Transaction } & \begin{array} { c } \text { Account(s) } \\\text { Increased }\end{array} & \begin{array} { c } \text { Account(s) } \\\text { Decreased }\end{array} & \begin{array} { c } \text { Total Assets and } \\\text { Total Equity: } \\\text { Increase, Decrease, } \\\text { or No Net Effect }\end{array} \\\hline \mathbf { a } & & & \\\hline \mathbf { b } & & & \\\hline \mathbf { c } & & & \\\hline\end{array}$$

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Definitions:

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Crisis of Connection

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Communicate Empathetically

The practice of understanding and sharing the feelings of another within the communication process, fostering connection and comprehension.

Brand Communities

Groups of ardent consumers united by their loyalty and dedication to a brand, characterized by shared values, experiences, and interaction with one another and the brand.