Jarvis Corporation Makes an Investment in 100 Shares of Saxton

question 112

Multiple Choice

Jarvis Corporation makes an investment in 100 shares of Saxton Company's common stock. The stock is purchased for $45 a share plus brokerage fees of $280. The entry for the purchase is ?

• A) Cash 4,500
• Investments-Saxton Company Stock 4,500
• B) Investments-Saxton Company Stock 4,780
• Cash 4,780
• C) Investments-Saxton Company Stock 4,500
• Brokerage Fee Expense 280
• Cash 4,780
• D) Investments-Saxton Company Stock 4,500
• Cash 4,500

---

Definitions:

Labor

Human effort, both physical and mental, used in the production of goods and services.

Production Possibilities

The various combinations of goods and services that can be produced from a fixed set of resources.

Circular-Flow Diagram

An economic model depicting how money, goods, and services move through an economy between households and firms.

Economy

An organized system of production, distribution, and consumption of goods and services within a specific geographical area, involving various agents and market forces.