
Long Term Investment:
Long term investment is the investment for long period generally for more than one year. The long term investment helps in the purchase of fixed assets, expansion, or for growth of the company. It shows under assets head of the
Equity Security:
It is the investment in the stock of another company. Sometime the company may invest in the common stock of another company and earn the huge return from that. Equity security involves high risk as the return is received after all the dues of the company.
Journal is the primary record of the business transaction in chronological (date wise) order. Journal Entry contains two effects one is debit and other is credit, under double entry book keeping system.
Adjusting entries are made at the end of the year to adjust the financial position of the enterprise according to accrual basis of accounting.
To prepare: Journal entries to record the transactions.

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Chapter C Solutions
Gen Combo Ll Financial Accounting Fundamentals; Connect Access Card
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- Brown Company estimates that monthly sales will be as follows. January $100,000 February 150,000 March 180,000 Historical trends indicate that 40 percent of sales are collected during the month of sale, 50 percent are collected in the month following the sale, and 10 percent are collected two months after the sale. Brown's accounts receivable balance as of December 31 totals $80,000 ($72,000 from December's sales and $8,000 from November's sales). The amount of cash Brown can expect to collect during the month of January is?arrow_forwardgiven answer General accounting questionarrow_forwardHow many units were completed during the period on these accounting question?arrow_forward
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