Question
Grayson Company purchased $400,000 face value bonds at 99. Accrued interest for three months was $6,000, and brokerage fees were $4,000. The cost of this
Grayson Company purchased $400,000 face value bonds at 99. Accrued interest for three months was $6,000, and brokerage fees were $4,000. The cost of this long-term investment in bonds is
Select one:
a. $406,000
b. $404,000
c. $410,000
d. $400,000
e. $396,000
Quinlan Company records $45,000 in the unearned service revenue account during the year. The ending balance of unearned service revenue is determined to be $18,000. The adjusting entry involves a:
Select one:
a. debit to service revenue for $18,000
b. debit to service revenue for $27,000
c. credit to service revenue for $27,000
d. credit to service revenue for $18,000
e. credit to unearned revenue for $18,000
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