Question
On February 15, Jewel Company buys notes of Marcelo Corp. for $202,110. The investment is classified as long-term available-for-sale securities. This is the companys first
On February 15, Jewel Company buys notes of Marcelo Corp. for $202,110. The investment is classified as long-term available-for-sale securities. This is the companys first and only investment in available-for-sale securities. The journal entry to record the purchase on February 15 is:
Multiple Choice
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Debit Debt InvestmentsAFS $202,110; credit Notes Payable $202,110.
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Debit Debt InvestmentsHTM $202,110; credit Cash $202,110.
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Debit Debt InvestmentsTrading $202,110; credit Notes Payable $202,110.
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Debit Long-Term InvestmentsAFS $202,110; credit Cash $202,110.
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Debit Debt InvestmentsTrading $202,110; credit Cash $202,110.
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Auditing Principle And Practice
Authors: Satyabrata Tripathy
1st Edition
9332519382, 9789332519381
