1. What are 3 main reasons why corporations invest in debt and stock securities? (Explain briefly, 1-3...
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Question:
1. What are 3 main reasons why corporations invest in debt and stock securities?
(Explain briefly, 1-3 sentences each)
2. Dwight Corporation purchased debt investments for 52,000 on January 1 2020. On July 1, 2020, Dwight received cash interest of 2,340. Prepare journal entries to
record the purchase and receipt of interest. Assume that no interest has been accrued.
3. On August 1, Nankang Company buys 1,000 shares of Lee common stock for 37,000 cash. On December 1, Nankang sells the stock investment for 40,000 in cash. Prepare
journal entries for the purchase and sale of common stock.
Expert Answer:
1 Corporations invest for three primary reasons a They have excess cash b They ... View the full answer
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