Question :
21) When the investment readily convertible to cash and the : 1230240
21) When the investment is readily convertible to cash and the investor plans to convert the investment to cash within one year, the investment is shown on the balance sheet as:
A) short-term.
B) long-term.
C) equity.
D) either long-term or short-term.
22) The following is the proper order for assets on a balance sheet:
A) Cash, intangibles, inventories, and long-term investments.
B) Cash, accounts receivable, property, plant and equipment, and long-term investments.
C) Cash, long-term investments, property, plant and equipment, and intangibles.
D) Cash, long-term investments, prepaid expenses and property, plant and equipment.
23) All investments not classified as available-for-sale investments or trading securities are:
A) equity investments.
B) debt investments.
C) held-to-maturity investments.
D) profitable investments.
24) On January 1, 2012, Plymouth Company purchases $100,000, 6% bonds at a price of 90.4 and a maturity date of January 1, 2016. Interest is paid semiannually, on January 1 and July 1. Plymouth Company has a calendar year end. The entry to record the purchase of the bond investment on January 1, 2012, would include a:
A) debit to Short-Term Investment in Bonds for $100,000.
B) debit to Short-Term Investment in Bonds for$ 90,400.
C) debit to Long-Term Investment in Bonds for $100,000.
D) debit to Long-Term Investment in Bonds for$ 90,400.
25) On January 1, 2012, Plymouth Company purchases $100,000, 6% bonds at a price of 90.4 and a maturity date of January 1, 2016. Interest is paid semiannually, on January 1 and July 1. Plymouth Company has a calendar year end. The entry for the receipt of interest on July 1, 2012 would include a:
A) debit to Cash for $3,000.
B) debit to Cash for $6,000.
C) debit to Interest Receivable for $3,000.
D) debit to Interest Receivable for $6,000.
26) On January 1, 2012, Plymouth Company purchases $100,000, 6% bonds at a price of 90.4 and a maturity date of January 1, 2016. Interest is paid semiannually, on January 1 and July 1. Plymouth Company has a calendar year end. The entry to amortize the bond investment on July 1, 2012 would include a:
A) debit to Cash for $ 200.
B) debit to Cash for $1,200.
C) debit to Long-Term Investment in Bonds for $ 200.
D) debit to Long-Term Investment in Bonds for $1,200.
27) On January 1, 2012, Plymouth Company purchases $100,000, 6% bonds at a price of 90.4 and a maturity date of January 1, 2016. Interest is paid semiannually, on January 1 and July 1. Plymouth Company has a calendar year end. The adjusting entry to accrue interest on December 31, 2012 would include a:
A) debit to Cash $3,000.
B) debit to Cash $6,000.
C) debit to Interest Receivable $3,000.
D) debit to Interest Receivable $6,000.
28) On January 1, 2012, Plymouth Company purchases $100,000, 6% bonds at a price of 90.4 and a maturity date of January 1, 2016. Interest is paid semiannually, on January 1 and July 1. Plymouth Company has a calendar year end. The adjusting entry to amortize the bond investment on December 31, 2012 would include a:
A) debit to Cash $200.
B) debit to Cash $1,200.
C) debit to Long-Term Investment in Bonds $1,200.
D) debit to Long-Term Investment in Bonds $ 200.
29) On January 1, 2012, Plymouth Company purchases $100,000, 6% bonds at a price of 90.4 and a maturity date of January 1, 2016. Interest is paid semiannually, on January 1 and July 1. Plymouth Company has a calendar year end. The entry for the receipt of interest on January 1, 2012 would include a:
A) credit to Interest Revenue $6,000.
B) credit to Interest Receivable $6,000.
C) credit to Interest Revenue $3,000.
D) credit to Interest Receivable $3,000.
30) On January 1, 2012, Winston Company purchased 6% bonds for $50,000 cash. Interest is payable semiannually on July 1 and January 1. The entry to record the July 1 semiannual interest payment would include a:
A) debit to Interest Receivable for $1,500.
B) credit to Interest Revenue for $1,500.
C) credit to Interest Revenue for $3,000.
D) debit to Interest Receivable for $3,000.
