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All marketable debt securities are held at cost on a company's balance sheet as a current asset, until a gain or loss is realized upon the sale of the debt instrument. Marketable debt securities are held as short-term investments and are expected to be sold within one year. If a debt security is expected to be held for longer than one year, it should be classified as a long-term investment on the company's balance sheet.
At the time of acquisition of a debt investment. Which of the following is not a true statement regarding short-term debt investments. On January 1, 2014, Brenner Company purchased at face value, a $1,000, 6% bond that pays interest on January 1 and July 1. Brenner Company has a calendar year end. The entry for the receipt of interest on January 1, 2015 is. On January 1, Skills Company purchased as a short-term investment a $1,000, 6% bond for $1,000. The bond pays interest on January 1 and July 1. The bond is sold on October 1 for $1,200 plus accrued interest.