On February 15, Jewel Company buys notes of Marcelo Corporation for $200,310. The investment is classified as long-term available-for-sale securities. This is the company’s first and only investment in available-for-sale securities. The journal entry to record the purchase on February 15 is:

Question

Answer

Debit Equity Method Investments $200,310; credit Cash $200,310.

Answer

Debit Debt Investments—Available-for-Sale (AFS) $200,310; credit Notes Payable $200,310.

Answer

Debit Stock Investments —Trading $200,310; credit Cash $200,310.

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Debit Debt Investments—Trading $200,310; credit Notes Payable $200,310.

Answer

Debit Debt Investments—Available-for-Sale (AFS) $200,310; credit Cash $200,310.

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On February 15, Jewel Company buys notes of Marcelo Corporation for $200,310. Th...

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