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.