Question
time crunch - THANK YOU SO MUCH 1. All of the following are true about debt securities EXCEPT: they reflect an ownership interest in the
time crunch - THANK YOU SO MUCH
1. All of the following are true about debt securities EXCEPT:
they reflect an ownership interest in the business. | ||
They can be short-term investments. | ||
They can be long-term investments | ||
They can have a cost lower than their maturity value. |
2. Strickland Corporation paid $100,000 to buy Nez Corporation's 8%, five year bonds payable with a $100,000 par value. Strickland intends to actively manage this investment for profit. This investment is classified as:
a significant influence security. | ||
an available-for-sale security. | ||
a held-to-maturity security. | ||
a trading security. |
3. Barnes Company holds $56,000 of 9.5% bonds that mature in six years as a held-to-maturity security. Which of the following is the correct journal entry to record the receipt of the semiannual interest payment?
debit Cash, $2,660; credit Long-Term Investments - HTM, $2,660. | ||
debit Unrealized Gain-Equity, $2,660; credit Cash, $2,660. | ||
debit cash, $5,320; credit Long-Term Investments - HTM, $5,320. | ||
debit Cash, $2,660; credit Interest Revenue, $2,660. |
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