Comoco purchased $3,000 of Borel Ltd shares intending to sell the shares within a short time at a profit.The journal entry to record the transaction would include a debit to cash and a credit to short-term investments.

Question

Quizplus · Accepted Answer

The journal entry would include a debit to short-term investments and a credit to cash, reflecting the purchase of shares (an investment) and the outflow of cash, respectively.

Comoco Purchased $3,000 of Borel Ltd Shares Intending to Sell