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Marketable Debt Securities Use the financial statement effects template to record the accounts and amounts for the following four transactions involving investments in marketable debt

Marketable Debt Securities Use the financial statement effects template to record the accounts and amounts for the following four transactions involving investments in marketable debt securities classified as available-for-sale securities. a. Loudder Inc. purchases 10,000 bonds with a face value of $1,000 per bond. The bonds are purchased at par for cash and pay interest at a semi-annual rate of 4%. b. Loudder receives semi-annual cash interest of $200,000. c. Year-end fair value of the bonds is $978 per bond. d. Shortly after year-end, Loudder sells all 10,000 bonds for $970 per bond. Use negative signs with answers, if appropriate. Balance Sheet Income Statement Noncash Contrib. Earned Transaction Cash Asset Loudder purchases bonds (10,000,000) Assets 10,000,000 Liabilities Captial Capital Revenues Expenses Net incon Loudder receives cash interest. 200,000 Bonds year-end fair value is determined. 0 (9,780,000) x 10 Loudder sells all bonds 485,000,000 x 0 200,000- 11,000 x 40,000 x 0~ 96 200,000 00 100 200,000 (15,000,000 Check

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