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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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