32,33,34

QUESTION 32 Dynamic Software, Inc. invests excess cash of $100,000 in corporate bonds on March 30, 2019. The bonds mature 20 years from the date of purchase. Dynamic plans to hold the bonds until maturity and has the ability to do so. How does the March 30, 2019 transaction affect the accouhting equation? A) liabilities will increase OB) equity will decrease OC) long-term assets will decrease OD) total assets will remain unchanged QUESTION 33 When a company pays cash for a long-term investment in bonds, A) equity remains unchanged B) current assets increase C) liabilities increase D) total assets increase QUESTION 34 Leonard Technologies invests $68,000 to acquire $68,000 face value, 10%, five-year corporate bonds on December 31, 2014. The bonds will mature on December 31, 2019. The bonds pay interest semiannually on December 31 and June 30 every year until maturity. Assume Leonard Technologies uses a calendar year. Based on the information provided, which of the following will be included in the journal entry for the transaction on December 31, 2018? A) a credit to interest Revenue for $6800 B) a debit to interest Revenue for $6800 Qa credit to Interest Revenue for $3400 D) a debit to interest Revenue for $3400