ACC 3003 Intermediate Financial Accounting II Accounting for Investments Question 1: Investment in Debt On January 1, 2019, Mariam Company purchased AED 290,000, 6% bonds. Mariam Company management intend to hold the securities until maturity. The market rate (yield) for similar bonds of risk and maturity are 7%. Mariam Company purchased the bonds for AED 260,000. Interest is payable semiannually on June 30 and December 31. The bonds mature on December 31, 2022. Mariam Company uses the effective-interest method to amortize discount or premium. Required: S. Mariam Company, due to liquidity issues, decides to sell its debt investment on January 2, 2020 for AED 250,000. Prepare the necessary journal entry. Date Account De CE ACC 3003 Intermediate Financial Accounting II Accounting for Investments Question 1: Investment in Debt On January 1, 2019, Mariam Company purchased AED 290,000, 6% bonds. Mariam Company management intend to hold the securities until maturity. The market rate (yield) for similar bonds of risk and maturity are 7%. Mariam Company purchased the bonds for AED 260,000. Interest is payable semiannually on June 30 and December 31. The bonds mature on December 31, 2022. Mariam Company uses the effective-interest method to amortize discount or premium. Required: S. Mariam Company, due to liquidity issues, decides to sell its debt investment on January 2, 2020 for AED 250,000. Prepare the necessary journal entry. Date Account De CE