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For Each of the Following Transactions Related to Held-To-Maturity Debt

Question 91

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For each of the following transactions related to Held-to-Maturity Debt securities,state the following:
(1)Which account(s)is (are)increased?
(2)Which account(s)is (are)decreased?
(3)What is the net effect on total assets and total equity? This net effect can be increase,decrease,or no net effect.
Transaction:
a.The investment was purchased at $50,000 (face value)plus brokerage fees of $2,000.
b.Semiannual interest of $1,500 was received.
c.The investment was disposed of at maturity.Cash in the amount of $50,000 was received.
 Transaction  Account(s)  Increased  Account(s)  Decreased  Total Assets and  Total Equity:  Increase, Decrease,  or No Net Effect abc\begin{array} { | l | l | l | l | } \hline \text { Transaction } & \begin{array} { c } \text { Account(s) } \\\text { Increased }\end{array} & \begin{array} { c } \text { Account(s) } \\\text { Decreased }\end{array} & \begin{array} { c } \text { Total Assets and } \\\text { Total Equity: } \\\text { Increase, Decrease, } \\\text { or No Net Effect }\end{array} \\\hline \mathbf { a } & & & \\\hline \mathbf { b } & & & \\\hline \mathbf { c } & & & \\\hline\end{array}

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