On February 1, Fairwing Company purchased short-term investments in available-for-sale debt securities at a cost of $45,000 cash. The journal entry on December 15 when Fairwing sells 30% of these securities ($13,500 cost) for $14,250 includes a: Multiple Choice Credit to Interest Revenue for $750. Debit to Cash for $13,500. Credit to Gain on Sale of Debt Investment for $750. O Credit to Debt Investments-Avallable-for-Sale for $14,250. Debit to Gain on Sale of Debt Investments for $750.
On February 1, Fairwing Company purchased short-term investments in available-for-sale debt securities at a cost of $45,000 cash. The journal entry on December 15 when Fairwing sells 30% of these securities ($13,500 cost) for $14,250 includes a: Multiple Choice Credit to Interest Revenue for $750. Debit to Cash for $13,500. Credit to Gain on Sale of Debt Investment for $750. O Credit to Debt Investments-Avallable-for-Sale for $14,250. Debit to Gain on Sale of Debt Investments for $750.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Munabhai
Transcribed Image Text:On February 1, Fairwing Company purchased short-term investments in available-for-sale debt securities at a cost
of $45,000 cash. The journal entry on December 15 when Fairwing sells 30% of these securities ($13,500 cost) for
$14,250 includes a:
Multiple Choice
Credit to Interest Revenue for $750.
Debit to Cash for $13,500.
Credit to Gain on Sale of Debt Investment for $750.
O Credit to Debt Investments-Avallable-for-Sale for $14,250.
Debit to Gain on Sale of Debt Investments for $750.
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