In: Accounting
1. Watt Co. purchased $300,000 of bonds for $315,000. If Watt intends to hold the securities to maturity, the entry to record the purchase of the investment includes
2. When a product or service is delivered for which a customer advance has been previously received, the appropriate journal entry includes:
A. A debit to a revenue and a credit to a liability account.
B. A debit to a revenue and a credit to an asset account.
C. A debit to an asset and a credit to a revenue account.
D. A debit to a liability and a credit to a revenue account.
1.
Accounts | Debit | Credit |
Investment in bonds | 300000 | |
Discount on bonds | 15000 | |
Cash | 315000 |
Option D is correct answer.
2.
Accounts | Debit | Credit |
Advance from customer | ||
Revenue |
Option D is correct answer.