JPIndustries Purchased Yang's Notes for $143,375 as a Long-Term Investment

question 113

Multiple Choice

J.P.Industries purchased Yang's notes for $143,375 as a long-term investment.The investment is classified as available-for-sale.J.P.'s entry to record the purchase transaction would include a:

• A)Credit to Short-Term Investments-AFS for $143,375.
• B)Credit to Long-Term Investments-AFS for $143,375.
• C)Credit to Notes Payable for $143,375.
• D)Debit to Equity Investments-AFS for $143,375.
• E)Debit to Debt Investments-AFS for $143,375.

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Definitions:

Toll-Free Number

A telephone number that allows callers to reach businesses or individuals without incurring charges, typically starting with prefixes like 800, 888, or 877.

Asset Accounts

Accounts that represent the different types of economic resources owned or controlled by an entity.

Land

Real estate or property, minus buildings and equipment, that is considered a fixed asset.

Buildings

Assets categorized under real estate property that are used for business operations or rented out for revenue generation.