Janus,Inc.invests excess cash of $100,000 in corporate bonds on March 30,2017.The bonds mature 20 years from the date of purchase.Janus plans to hold the bonds until maturity.How does the March 30,2017 transaction affect the accounting equation?

Question

Quizplus · Accepted Answer

The investment in corporate bonds increases long-term assets by $100,000, and since cash (a current asset) is decreased by the same amount, total assets remain unchanged.

Janus,IncInvests Excess Cash of $100,000 in Corporate Bonds on March