question 1)

On May 15, 2020, Bagle Corp. purchased 1,000 common shares of Holter Inc. for $24,000, as a Fair Value through Other Comprehensive Income (FV-OCI) equity investment. At December 31, 2020, the fair value of these shares was $26,550. The required adjusting entry to reflect this fact is

1) debit Unrealized Gain or Loss (OCI), credit Fair value-OCI Investment $26,550.

2)debit Unrealized Gain or Loss (OCI), credit Fair value-OCI Investment $2,550.

3) debit Fair value-OCI Investment, credit Unrealized Gain or Loss (OCI) $2,550.

4 )debit Fair value-OCI Investment, credit Unrealized Gain or Loss (OCI) $26,550.

question 2)

Which of the following equations is correct?

1)Equity = Assets minus Liabilities.

2)Assets plus Liabilities = Equity.

3)Assets = Liabilities minus Equity.

4)Liabilities = Assets plus Equity.

question 3)

On November 1, 2020, Halton Corp. purchased equipment by signing a 6-month, 4% note for $180,000. The December 31, 2020, adjusting entry required in connection with this note is

debit Interest Expense and credit Interest Payable, $7,200.

debit Interest Expense and credit Interest Payable, $1,200.

debit Interest Expense and credit Interest Payable, $3,600.

debit Interest Expense and credit Cash, $1,200.