ACC 537 STUDY Extraordinary Success/acc537study.com ACC 537 STUDY Extraordinary Success/acc537study.c | Page 15

Identify and explain the three types of classifications for investments
in debt securities.
Conclusionase
===================================================
ACC 537 Week 5 Textbook Problem P17 7 Wildcat
Company
FOR MORE CLASSES VISIT
www.acc537study.com
P17-7 (Available-for-Sale and Held-to-Maturity Debt Securities
Entries) The following information relates to the debt securities
investments of Wildcat Company.
1. On February 1, the company purchased 10% bonds of Gibbons Co.
having a par value of $300,000 at 100 plus accrued interest. Interest is
payable April 1 and October 1.
2. On April 1, semiannual interest is received.
3. On July 1, 9% bonds of Sampson, Inc. were purchased. These bonds
with a par value of $200,000 were purchased at 100 plus accrued
interest. Interest dates are June 1 and December 1.
4. On September 1, bonds with a par value of $60,000, purchased on
February 1, are sold at 99 plus accrued interest.