Explanation Investment: It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in equity securities such as shares or debt securities such as bonds. Record the journal entry for the purchase of the equity securities as on January 1. Date Account Title and Explanation Debit ($) Credit ($) January 1 Investment in equity securities (1) 12,000 Cash 12,000 (To record the investment made in equity securities)

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ISBN: 9781337709354

Author: WAHLEN

Publisher: CENGAGE L

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading struc…

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Chapter 13, Problem 11RE

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Record the journal entry for the purchase of the equity securities as on January 1.

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Chapter 13 Solutions

INTERM.ACCT.:REPORTING...-CENGAGENOWV2

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Record the journal entry for the purchase of the equity securities as on January 1.

Solution Summary: The author explains that investment refers to the process of using the currently held excess cash to earn profitable returns in future.

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Record the journal entry for the purchase of the equity securities as on January 1.

Chapter 13 Solutions