on-january-1-xyz-company-purchased-200-shares-of-abc-company-at-a-total-price-of

Question

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?

Accepted Answer

Debit Investment in AFS Securities $$10,000; Credit Cash 10$$,000

Answer

Debit Cash $$200; Credit Investment in AFS Securities 200$$

Answer

Debit Cash $$10,000; Credit Investment in AFS Securities 10$$,000

Answer

Debit Investment in AFS Securities $$200; Credit Cash 200$$

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?