Investment: To get the financial benefits, money spends or invests is known as investment. The benefits can be in the form of dividend, interest, and rental income. Securities: Securities are the financial term which is issued by the companies in the secondary market to get the long-term or short-term funds. Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts. Accounting rules for journal entries: To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains. To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains. To prepare: The adjusting entries in the books of Company C.

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Chapter 16, Problem 16Q

To determine

Investment: To get the financial benefits, money spends or invests is known as investment. The benefits can be in the form of dividend, interest, and rental income.

Securities: Securities are the financial term which is issued by the companies in the secondary market to get the long-term or short-term funds.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To prepare: The adjusting entries in the books of Company C.

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