J.P.Industries purchased 2,000 shares of Yang's common stock for $143,000 as a long-term investment.The investment is classified as available-for-sale securities.The par value of the stock was $1 per share.J.P.paid $375 in commissions on the transaction.J.P.'s entry to record the purchase transaction would include a:
A)Credit to Common Stock for $2,000.
B)Credit to Common Stock for $143,000.
C)Credit to Common Stock for $143,375.
D)Debit to Long-Term Investments-AFS for $143,000.
E)Debit to Long-Term Investments-AFS for $143,375.

Question

Quizplus · Accepted Answer

The purchase price of $143,000 plus the commission of $375 should be debited to Long-Term Investments-AFS, totaling $143,375.

JPIndustries Purchased 2,000 Shares of Yang's Common Stock for $143,000