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 Long-term Investment and credit Cash.
D) debit to Dividend Revenue and credit to Cash.
Correct Answer:
Verified
Q1: The purpose of purchasing a trading security
Q2: A realized gain on the sale of
Q6: Investments in Trading Securities are reported on
Q6: A company will have an unrealized loss
Q8: Stock investments that are to be sold
Q8: All investments in securities NOT classified as
Q9: When a company receives a cash dividend
Q11: Unrealized gains on trading securities are reported
Q13: Which of the following statements is CORRECT?
A)Trading
Q18: Trading securities are originally recorded at their
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