As an investment in associates,Spotifly purchased 1,000 Tangerine Music Corp common shares for $123,000.Tangerine Music Corp also paid $575 in commissions on the transaction.The entry to record the transaction would include a:

Question

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When purchasing shares in a company, the entry would include a debit to Investment in Tangerine Music Common Shares for $123,000, as this represents the cost of the investment. Additionally, there would be a credit to Cash for $123,575, which includes the cost of the shares as well as the commissions paid. The credit to Common Shares would only be necessary if Tangerine Music Corp issued new shares specifically to Spotifly.

As an Investment in Associates,Spotifly Purchased 1,000 Tangerine Music Corp