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Assessing Financial Statement Effects of Trading and Available-for-Sale (Debt) Securities Four transactions involving investments in marketable debt securities classified as trading follow. (1) On July

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Assessing Financial Statement Effects of Trading and Available-for-Sale (Debt) Securities Four transactions involving investments in marketable debt securities classified as trading follow. (1) On July 1, purchased US Treasury Bonds for $427,000 in cash. The bonds have a face value of $420,000 and pay interest semi-annually (June 30 and December 31 ) at an annual rate of 4.00%. (2) Received cash interest payment of $8,400 on December 31. (3) Year-end market price of bonds is $431,200. (4) Received cash interest payment of $8,400 and sold all bonds on June 30 for $428,400. (i.) ii.) Note: Enter your answers, in transaction order, in the first open field of the appropriate column in each account. b. Assuming that the debt securities are classified as available-for-sale, (i.) prepare the journal entries to record the four transactions, and (ii.) post the journal entries to their respective T-accounts. (i.) (ii.) - Note: Enter your answers, in transaction order, in the first open field of the appropriate column in each account. Assessing Financial Statement Effects of Trading and Available-for-Sale (Debt) Securities Four transactions involving investments in marketable debt securities classified as trading follow. (1) On July 1, purchased US Treasury Bonds for $427,000 in cash. The bonds have a face value of $420,000 and pay interest semi-annually (June 30 and December 31 ) at an annual rate of 4.00%. (2) Received cash interest payment of $8,400 on December 31. (3) Year-end market price of bonds is $431,200. (4) Received cash interest payment of $8,400 and sold all bonds on June 30 for $428,400. (i.) ii.) Note: Enter your answers, in transaction order, in the first open field of the appropriate column in each account. b. Assuming that the debt securities are classified as available-for-sale, (i.) prepare the journal entries to record the four transactions, and (ii.) post the journal entries to their respective T-accounts. (i.) (ii.) - Note: Enter your answers, in transaction order, in the first open field of the appropriate column in each account

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