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On Jan 1 SSS buys 1000 shares of GM common stock (1% of outstanding shares) for $100/share. SSS exerts no influence on GM. Journalize the

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On Jan 1 SSS buys 1000 shares of GM common stock (1% of outstanding shares) for $100/share. SSS exerts no influence on GM. Journalize the purchase. debit stock investment at equity and credit cash $100,000 debit stock investment and credit cash $100,000 debit cash and credit cost of 'stock investment $100,000 debit cash and credit stock investment $100,000 debit cost of stock investment and credit cash $100,000 What is most important to a company's owners? liquidity and leverage profitability and solvency solvency and transparency solvency and liquidity profitability and liquidity On July 1, SSS receives interest from the bonds (50 $1000 Face Value Treasury Bonds, coupon of 10% paid semiannually July 1 and Jan 1). Journalize the purchase: Assume no accrual June 30th and journalize the interest received. debit cash $2500 and credit interest revenue $2500 debit interest receivable $1250 and credit interest revenue $1250 debit interest receivable $2500 and credit interest revenue $2500 debit cash $5000 and credit interest revenue $5000 Debit cash $1250 and credit interest revenue $1250 If a Company owns shares of XYZ stock (30% of XYZ's outstanding shares and the Company exerts influence on XYZ), what journal entry does the Company make when XYZ declares a $100,000 cash dividend? debit cash and credit dividend revenue $30,000 debit cash and credit stock investment $30,000 debit cash and credit revenue from stock investment $100,000 debit cash and credit equity from stock investment $30,000 debit cash and credit stock investment $100,000 If a company sells shares of stock (that it's holding as an investment) below the cost basis of the stock, what is the Journal Entry? debit stock investment, credit cash and loss on sale debit unrealized loss-Equity and credit stock investment debit unrealized loss-Income and credit stock investment debit cash and credit stock investment debit cash and loss on sale, credit stock investment If a Company owns shares of XYZ stock (30% of XYZ's outstanding shares and the Company exerts influence on XYZ), how will the Company report the investment on the balance sheet if the shares were purchased as a long-term investment? under current assets: stock investments, at fair value under investments: stock investments, at fair value under current assets: stock investments, at cost under investments: stock investments, at cost under investments: stock investments, at equity

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