Which of the Following Journal Entries Would Have to Be

question 9

Multiple Choice

Which of the following journal entries would have to be made to record X's purchase of Y's shares?

• A)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Investment in } Y & \$ 100,000 & \\
• \hline \text { Cash } & & \$ 100,000 \\
• \hline
• \end{array}\]
• B)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Investment in } Y & \$ 12,000 & \\
• \hline \text { Cash } & & \$ 12,000 \\
• \hline
• \end{array}\]
• C)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Investment in } Y & \$ 112,000 & \\
• \hline \text { Goodwill } & & \$ 112,000 \\
• \hline
• \end{array}\]
• D)No entry requireD.

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Definitions:

Recency Effect

The tendency to remember the most recently presented items or experiences more efficiently than those presented earlier.

TOT Effect

The Tip of the Tongue phenomenon, a state where one cannot quite recall a familiar word but feels that retrieval is imminent.

Tip-Of-The-Tongue Phenomenon

A cognitive condition where a person is unable to recall a familiar word or name, experiencing a temporary block or lapse in memory.

Encoding Problems

Difficulties in converting information into a form that can be stored and retrieved from memory, often affecting learning and retention.