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Morgan Company purchased 2,000 shares of Asta's common stock for $143,000 as a long-term investment. The investment is classified as available-for-sale securities. The par value
Morgan Company purchased 2,000 shares of Asta's common stock for $143,000 as a long-term investment. The investment is classified as available-for-sale securities. The par value of the stock was $1 per share. Morgan paid $375 in commissions on the transaction. The entry to record the transaction would include a:
Credit to Common Stock for $2,000. | ||
Credit to Common Stock for $143,000. | ||
Credit to Common Stock for $143,375. | ||
Debit to Long-Term Investments-AFS for $143,000. | ||
Debit to Long-Term Investments-AFS for $143,375. |
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