Perry Investments bought 2,000 shares of Able, Inc. common stock on January 1, 2015, for $20,000 and 2,000 shares of Baker, Inc. common stock on July 1, 2015 for $24,000. Baker paid $2,400 of previously declared dividends to Perry on December 31, 2015. At the end of 2015, the market value of the Able stock was $18,000 and the market value of the Baker stock was $28,000. The stocks were purchased for short-term speculation. Perry owns 10% of each company.
-The entry to record the purchase of Able,Inc.common stock would be
B) DR Available-for-sale securities-Able common $\quad 20,000$ CR Cash$\quad$20,000
C) DR Held to maturity securities-Able common$\quad$20,000 CR Cash$\quad$20,000
D) DR Cash$\quad$20,000 CR Available-for-sale securities -Able common$\quad$20,000

Question

Perry Investments bought 2,000 shares of Able, Inc. common stock on January 1, 2015, for $20,000 and 2,000 shares of Baker, Inc. common stock on July 1, 2015 for $24,000. Baker paid $2,400 of previously declared dividends to Perry on December 31, 2015. At the end of 2015, the market value of the Able stock was $18,000 and the market value of the Baker stock was $28,000. The stocks were purchased for short-term speculation. Perry owns 10% of each company.
-The entry to record the purchase of Able,Inc.common stock would be
B) DR Available-for-sale securities-Able common $\quad 20,000$ CR Cash$\quad$20,000 
C) DR Held to maturity securities-Able common$\quad$20,000 CR Cash$\quad$20,000 
D) DR Cash$\quad$20,000 CR Available-for-sale securities -Able common$\quad$20,000

Quizplus · Accepted Answer

The Answer of Perry Investments bought 2,000 shares of Able, Inc. common stock on January 1, 2015, for $20,000 and 2,000 shares of Baker, Inc. common stock on July 1, 2015 for $24,000. Baker paid $2,400 of previously declared dividends to Perry on December 31, 2015. At the end of 2015, the market value of the Able stock was $18,000 and the market value of the Baker stock was $28,000. The stocks were purchased for short-term speculation. Perry owns 10% of each company.
-The entry to record the purchase of Able,Inc.common stock would be
B) DR Available-for-sale securities-Able common $\quad 20,000$ CR Cash$\quad$20,000 
C) DR Held to maturity securities-Able common$\quad$20,000 CR Cash$\quad$20,000 
D) DR Cash$\quad$20,000 CR Available-for-sale securities -Able common$\quad$20,000

Perry Investments Bought 2,000 Shares of Able, Inc 20,000\quad 20,00020,000 CR Cash

Perry Investments Bought 2,000 Shares of Able, Inc $\quad 20,000$ CR Cash