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Jacobs Corporation Makes a Short-Term Investment in 150 Ordinary Shares $50 \$ 50

Question 94

Multiple Choice

Jacobs Corporation makes a short-term investment in 150 ordinary shares of Starr Company. The shares are purchased for $50 \$ 50 a share plus brokerage fees of $450 \$ 450 . The entry for the purchase is


A)  Debt Investments 7,500Cash 7,500\begin{array} { l }\text { Debt Investments } &7,500\\ \text {Cash } &&7,500\\\end{array}

B)  Share Investments 7,950 Cash7,950\begin{array} { l }\text { Share Investments } &7,950\\ \text { Cash} &&7,950\\\end{array}

C)  Share Investments 7,500 Brokerage Fee Expense450Cash 7,950\begin{array} { l }\text { Share Investments } &7,500\\ \text { Brokerage Fee Expense} &450\\ \text {Cash } &&7,950\\\end{array}

D)  Share Investments 7,500Cash 7,500\begin{array} { l }\text { Share Investments } &7,500\\ \text {Cash } &&7,500\\\end{array}

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