Which of the following is generally correct about recording a sale of debt security before maturity date?
Saturday, March 14th, 2009
angel_rat_83 asked:
(a) Accrued interest will be received be the seller even though it is not an interest payment date.
(b) An entry must be made to amortize a discount to the date of sale.
(c) The entry to amortize a premium to the date of sales includes a credit to the Premium on Investments in Debt Securities.
(d) A gain or loss on the sale is not extraordinary…I know it’s not this one.
WILLIAM
(a) Accrued interest will be received be the seller even though it is not an interest payment date.
(b) An entry must be made to amortize a discount to the date of sale.
(c) The entry to amortize a premium to the date of sales includes a credit to the Premium on Investments in Debt Securities.
(d) A gain or loss on the sale is not extraordinary…I know it’s not this one.
WILLIAM
