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. assume that these transactions occur in 2016 (before the new rules for securities went into effect).
a. loudder inc. purchases 5,000 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 5,000 bonds for $970 per bond.