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Morgan Corporation has excess cash to invest and pays $100,000 to buy 7%, five-year bonds of Roberts Corporation, at face value, on June 30, 2024. The bonds pay interest on June 30 and December 31. Morgan intends to and has the ability to hold the bonds to maturity. The bonds are disposed of, at face value, on June 30 two years later. The journal entry for June 30, 2024 is: O Cash Held-to-Maturity Debt Investments O Cash 0 0 Equity Investments O Held-to-Maturity Debt Investments Cash O Equity Investments Cash 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000

Morgan Corporation has excess cash to invest and pays $100,000 to buy 7%, five-year bonds of Roberts Corporation, at face value, on June 30, 2024. The bonds pay interest on June 30 and December 31. Morgan intends to and has the ability to hold the bonds to maturity. The bonds are disposed of, at face value, on June 30 two years later. The journal entry for June 30, 2024 is: O Cash Held-to-Maturity Debt Investments O Cash 0 0 Equity Investments O Held-to-Maturity Debt Investments Cash O Equity Investments Cash 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Morgan Corporation has excess cash to invest and pays $100,000 to buy 7%, five-year bonds of Roberts Corporation, at face value, on June 30, 2024. The bonds pay interest on June 30 and December 31. Morgan intends to and has the ability to hold the bonds to maturity. The bonds are disposed of, at face value, on June 30 two years later. The journal entry for June 30, 2024 is: Cash Held-to-Maturity Debt Investments Cash Equity Investments Held-to-Maturity Debt Investments Cash Equity Investments Cash 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
Transcribed Image Text:Morgan Corporation has excess cash to invest and pays $100,000 to buy 7%, five-year bonds of Roberts Corporation, at face value, on June 30, 2024. The bonds pay interest on June 30 and December 31. Morgan intends to and has the ability to hold the bonds to maturity. The bonds are disposed of, at face value, on June 30 two years later. The journal entry for June 30, 2024 is: Cash Held-to-Maturity Debt Investments Cash Equity Investments Held-to-Maturity Debt Investments Cash Equity Investments Cash 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
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