ACC 537 STUDY Start With a Dream /acc537study.com ACC 537 STUDY Start With a Dream /acc537study.com | Page 14

Distinguish between a debt security and equity security
What purpose does the variety in bond features (types and
characteristics) serve?
What is meant by "Yield to Maturity"?
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.