Use the following information to answer questions.
Wells Inc. reported these transactions relating to marketable Held for Trading Investments intended to generate net income and to be sold in the near term:
-The entry to record the purchase of the Taylor shares on Feb 1 would include a
A) debit to Long-Term Held for Trading Investments.
B) debit to Held for Trading Investments.
C) debit to Strategic Investments.
D) debit to Investment in Associates.

Question

Use the following information to answer questions.
Wells Inc. reported these transactions relating to marketable Held for Trading Investments intended to generate net income and to be sold in the near term: 
-The entry to record the purchase of the Taylor shares on Feb 1 would include a
A) debit to Long-Term Held for Trading Investments. 
B) debit to Held for Trading Investments. 
C) debit to Strategic Investments. 
D) debit to Investment in Associates.

Quizplus · Accepted Answer

The purchase of shares for trading purposes is recorded as a debit to Held for Trading Investments, reflecting the intention to sell them in the short term for profit.

Use the Following Information to Answer Questions