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 7,000 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 $140,000. C. Year-end fair value of the bonds is $978 per bond. d. Shortly after year-end, Loudder sells all 7,000 bonds for $970 per bond. Use negative signs with answers, if appropriate. Balance Sheet Income Statement Noncash Contrib. Captial Cash Asset + Assets Liabilities + Earned Capital 0 Revenues Net income Expenses 0 7,000,000 0 0 0 0 Transaction Loudder purchases bonds. Loudder receives cash interest. Bonds year-end fair value is determined. Loudder sells all bonds (7,000,000) 140,000 0 0 0 140,000 140,000 0 140,000 0 0 O 978 x 0 O O (110,000) * (6,790,000) x 6,790,000 0 O 0 x 0 0 x 0 X