Use the Following Information for Questions:
Terry Inc -At the End of the Third Quarter, the Adjusting Entry

question 61

Multiple Choice

Use the following information for questions:
Terry Inc.purchased shares in three companies during the second quarter of 2011.They prepare interim financial statements each quarter and yearly statements as of December 31.Shown below are their investments in temporary investments for 2011. $\begin{array}{lrrrrrr}&\text { 2nd Qtr. } && \text { 3rd Qtr. } && \text { 4th Qtr. }\\\text { Investments } & \text { Cost } & \text { Market } & \text { Cost} & \text { Market } & \text { Cost} & \text { Market }\\\hline\text { Sunshine Co. shares } & \$ 43 & \$ 45 & \$ 43 & \$ 46 & \$ 43 & \$ 45 \\\text { New Ventures Inc. shares } & 101 & 99 & 101 & 105 & 101 & 103 \\\text { Good Day. shares } & 51 & 49 & 51 & 47 & 51 & 46\end{array}$
-At the end of the third quarter, the adjusting entry would include a:

• A)debit to temporary investments for $5.
• B)credit to gain on temporary investments for $3.
• C)debit to unrealized loss on temporary investments for $3.
• D)credit to temporary investments for $5.

---

Definitions:

Fiduciary Relationship

A trustworthy legal and ethical connection where the fiduciary is responsible for acting in the utmost interest of the principal or beneficiary.

Executor

An individual appointed to administer the estate of a deceased person in accordance with their will.

Holographic

Relates to a will or other document written entirely in the handwriting of the person whose signature it bears.

Handwriting

The individual manner in which a person writes with a pen or pencil, producing characters and symbols on a surface, often analyzed in legal documents for authentication.