On December 31,as a short-term investment,Music City purchased 300 Radio Land Corporation common shares at $50 per share plus a $50 commission.The amount recorded as a debit to Short-term Investments- Radio Land would be

Question

Quizplus · Accepted Answer

To calculate the amount recorded as a debit to Short-term Investments- Radio Land, we need to consider the cost of the shares and the commission paid. 
The cost of 300 shares at $50 per share is: 300 x $50 = $15,000 
The commission paid is an additional $50. 
So, the total amount Music City paid is: $15,000 + $50 = $15,050 
Therefore, the amount recorded as a debit to Short-term Investments- Radio Land would be $15,050.

On December 31,as a Short-Term Investment,Music City Purchased 300 Radio