On January 1, XYZ Company purchased 200 shares of ABC Company at a total price of \$10,000. What is the correct journal entry for this transaction?

• A. Debit Cash \$200; Credit Investment in AFS Securities \$200
• B. Debit Cash \$10,000; Credit Investment in AFS Securities \$10,000
• C. Debit Investment in AFS Securities \$200; Credit Cash \$200
• D. Debit Investment in AFS Securities \$10,000; Credit Cash \$10,000

Answer: (D)