CH 17: Bond and Debt-Investments
Debt Investment Classification Chart on Slide 2
***Will never use Discounts or Premiums in this chapter
➢ Held to Maturity
o Requires Both:
▪ The Positive Intent and
▪ The Ability to Hold Securities to Maturity (Intent/Financially Stable)
o Accounted for at amortized cost, not fair value
➢ Illustration: Z- Smith Company (Held to Maturity)
DEBT INVESTMENT
92,278
614
92,892
645
93,537
1/1/16 Debt Investments 92,278
Cash 92,278
676
703
