Matthew Company purchases a trading security for $12,000 cash. The journal entry to record this transaction will include a:
A) debit to the Investment in Trading Securities account and a credit to Cash.
B) debit to Cash and a credit to the Investment in Trading Securities account.
C) debit to the Long-term Investment account and a credit Cash.
D) debit to the Unrealized Loss on Trading Securities account and a credit to Cash.
Correct Answer:
Verified
Q1: An unrealized gain on a trading security:
A)is
Q2: At the end of each period, unrealized
Q3: A company's trading security has a fair
Q4: Investments in trading securities:
A)are reported after accounts
Q6: A company will have an unrealized loss
Q7: Stock investments that are expected to be
Q8: All investments in securities NOT classified as
Q9: When a company receives a cash dividend
Q10: Trading securities may generate dividend revenue.
Q11: Investments in debt and equity securities create
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