![isabellebisio](/avatars/39994.jpg)
isabellebisio
18.07.2020 •
Business
Amazon Services, Inc. invests its excess cash in Nile Technologies, Inc. and acquires 6,000 shares for $62.00 per share. Amazon Services, Inc. owns less than 2% of Nile's voting stock and plans to hold the stock for two years. While preparing the journal entry to record this transaction:.
A. Common Stock is debited for $372,000
B. An equity account is debited for $372,000
C. Equity Investments is debited for $372,000
D. Long-term Investments is credited for $372,000
Solved
Show answers
More tips
- H Health and Medicine How to Calm Your Nerves? Expert Tips That Actually Work...
- H Health and Medicine How to Treat the Flu: A Comprehensive Guide...
- O Other What is a Disk Emulsifier and How Does it Work?...
- A Animals and plants 5 Tips for Taking Care of Yews to Keep Them Green and Beautiful...
- S Sport How to wrap boxing hand wraps? Everything you need to know!...
- F Food and Cooking 10 Reasons Why You Should Avoid Giving Re-Gifts: An Informative Guide...
- F Family and Home Tender Care for Your Parquet: Is it Possible to Clean Parquet?...
- S Style and Beauty How Are Eyelash Extensions Applied? All Your Questions Answered...
- F Food and Cooking 10 Tips for Proper Sushi Consumption...
- S Style and Beauty Learn how to tie a keffiyeh on your head like a pro...
Answers on questions: Business
- B Business Alice has found a great book review to use for her speech. while the book being reviewed is a little too complicated for her purposes, the review condenses the material...
- B Business Hepburn Company bought a copyright for $165,000 on January 1, 2018, at which time the copyright had an estimated useful life of 15 years. On January 5, 2021, the company...
- B Business As the equilibrium price falls in a perfectly competitive market, firms fall(s) and their profits ....
- B Business Postponing is one technique for in a sales presentation. Postponing is one technique for in a sales presentation. helping customers to feel at ease building relationships...
- B Business The cost savings and/or advantages that individual firms get when they are located in the same area as other firms of the same industry is known as a(n) economy....
- B Business mplications for business strategy and public policy under neo-classical and behavioralist assumptions(which would require more regulatory involvement...
- B Business Jane Industries manufactures plastic toys. During October, Jane s Fabrication Department started work on 10,200 models. During the month, the company completed 11,200...
- B Business Prepare a balance sheet for Alaskan Peach Corp. as of December 31, 2019, based on the following information: cash = $209,000; patents and copyrights = $863,000; accounts...
- B Business Garr Co. issued $6,000,000 of 12%, 5-year convertible bonds on December 1, 2020 for $6,025,480 plus accrued interest. The bonds were dated April 1, 2020 with interest...
- B Business If consumption in the United States was 68 percent of GDP, investment was 19 percent, government purchases were 13 percent, exports were 14 percent, and imports were...
Ответ:
Option B. Equity Investments is debited for $372,000
Explanation:
The initial journal entry to record the equity Investment will be treated same as purchase of an asset, which means the equity Investment account will be debited with the amount paid and the cash account will be credited with an equal balance.
Dr Equity Investments (6,000 * $62 per share) $372,000
Cr Cash Account $372,000
Ответ: