I HAVE ONLY MISSED 2 ANSWERS, THE LAST BOTTOM 2 ON LOWER RIGHT CORNER: EXPENSES

Question

I HAVE ONLY MISSED 2 ANSWERS, THE LAST BOTTOM 2 ON LOWER RIGHT CORNER: EXPENSES & NET INCOME UNDER LOUDDER SELLS ALL BONDS.  

I HAVE ALL ANSWERS CORRECT EXCEPT THE TWO ABOVE MENTIONED: SO FAR I HAVE TYPED IN UNDER EXPENSES: -150,000, 150,000, 48,000, 0, AND -48,000 AND ALL ARE WRONG

ON NET INCOME I HAVE TYPED IN: 0, -150,000, -48,000, 48,000, AND 150,000

Marketable Debt Securities

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 6,000 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 $240,000.
c. Year-end fair value of the bonds is $978 per bond.
d. Shortly after year-end, Loudder sells all 6,000 bonds for $970 per bond.

Use negative signs with answers, if appropriate.                         

Answer

Balance Sheet Income Statement Noncash Contrib. Earned Transaction Cash Asset + Assets = Liabilities + Captial + Capital Revenues - Expenses = Net income Loudder purchases bonds. Answer Answer Answer Answer Answer Answer Answer Answer Loudder receives cash interest. Answer Answer Answer Answer Answer Answer Answer Answer Bonds year-end fair value is determined. Answer Answer Answer Answer Answer Answer Answer Answer Loudder sells all bonds Answer Answer Answer Answer Answer Answer Answer

Answer

Explanation / Answer

Balance Sheet

Balance Sheet

Income Statement Noncash Contrib. Earned Transaction Cash Asset + Assets = Liabilities + Captial + Capital Revenues - Expenses = Net income Loudder purchases bonds $                     -60,00,000 + $         60,00,000 = + + - = Loudder receives cash interest $                        2,40,000 + = + + $          2,40,000 - = $             2,40,000 Bonds year-end fair value is determined. + $         -1,32,000 = + + $      -1,32,000 - = Loudder sells all bonds $                      58,20,000 + $       -58,68,000 = + + $        1,32,000 - $           1,80,000 = $            -1,80,000

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