12 Ch0. 12 - T-Accounts - Analyzing Investments with...

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1 Analyzing Investments with T-Accounts Fair Value Method Held-to-Maturity Securities - Bonds Purchase. $100,000 8% to yield 10% Investment in HTM Securities Cash Dr. + Cr. - Dr. + Cr. - 92,278 92,278 OR Investment in HTM Securities Discount on Bond Investments Dr. + Cr. - Dr. + Cr. - 100,000 7,722 Cash Dr. + Cr. - 92,278 Cash Investment Revenue - Interest Dr. + Cr. - Dr. - Cr. + 4,000 4,614 Investment in HTM Securities Dr. + Cr. - 614 OR Cash Investment Revenue - Interest Dr. + Cr. - Dr. - Cr. + 4,000 4,614 Discount on Bond Investments Dr. + Cr. - 614 Accrued interest at year end. Interest Receivable Investment Revenue - Interest Dr. + Cr. - Dr. - Cr. + 4,000 4,645 Investment in HTM Securities Dr. + Cr. - 645 OR Interest Receivable Investment Revenue - Interest Dr. + Cr. - Dr. - Cr. + 4,000 4,645 Discount on Bond Investments Dr. + Cr. - 645
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2 Semiannual interest payment at beginning of new year. Cash
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This note was uploaded on 10/23/2009 for the course MGMT 401 taught by Professor Merlot during the Spring '09 term at Indiana Institute of Technology.

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12 Ch0. 12 - T-Accounts - Analyzing Investments with...

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