Investment: To get the financial benefits, money spends or invests is known as investment. The benefits can be in the form of dividend, interest, and rental income. Securities: Securities are the financial term which is issued by the companies in the secondary market to get the long-term or short-term funds. Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts. Accounting rules for journal entries: To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains. To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains. To prepare: The journal entries in the books of Company M.

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Answer 1

Question

Chapter 16, Problem 16.4BE

To determine

Investment: To get the financial benefits, money spends or invests is known as investment. The benefits can be in the form of dividend, interest, and rental income.

Securities: Securities are the financial term which is issued by the companies in the secondary market to get the long-term or short-term funds.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To prepare: The journal entries in the books of Company M.

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Answer 2

Question

Chapter 16, Problem 16.4BE

To determine

Investment: To get the financial benefits, money spends or invests is known as investment. The benefits can be in the form of dividend, interest, and rental income.

Securities: Securities are the financial term which is issued by the companies in the secondary market to get the long-term or short-term funds.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To prepare: The journal entries in the books of Company M.

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Answer 3

Question

Chapter 16, Problem 16.4BE

To determine

Investment: To get the financial benefits, money spends or invests is known as investment. The benefits can be in the form of dividend, interest, and rental income.

Securities: Securities are the financial term which is issued by the companies in the secondary market to get the long-term or short-term funds.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To prepare: The journal entries in the books of Company M.

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Answer 4

Question

Chapter 16, Problem 16.4BE

To determine

Investment: To get the financial benefits, money spends or invests is known as investment. The benefits can be in the form of dividend, interest, and rental income.

Securities: Securities are the financial term which is issued by the companies in the secondary market to get the long-term or short-term funds.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To prepare: The journal entries in the books of Company M.

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Answer 5

Chapter 16, Problem 16.4BE

To determine

Investment: To get the financial benefits, money spends or invests is known as investment. The benefits can be in the form of dividend, interest, and rental income.

Securities: Securities are the financial term which is issued by the companies in the secondary market to get the long-term or short-term funds.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To prepare: The journal entries in the books of Company M.

Answer 6

Chapter 16, Problem 16.4BE

To determine

Investment: To get the financial benefits, money spends or invests is known as investment. The benefits can be in the form of dividend, interest, and rental income.

Securities: Securities are the financial term which is issued by the companies in the secondary market to get the long-term or short-term funds.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To prepare: The journal entries in the books of Company M.

Answer 7

Chapter 16, Problem 16.4BE

To determine

Investment: To get the financial benefits, money spends or invests is known as investment. The benefits can be in the form of dividend, interest, and rental income.

Securities: Securities are the financial term which is issued by the companies in the secondary market to get the long-term or short-term funds.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

To prepare: The journal entries in the books of Company M.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 16 - Prob. 1Q Ch. 16 - Prob. 2Q Ch. 16 - Prob. 3Q Ch. 16 - Prob. 4Q Ch. 16 - 5. What is the cost of an investment in stock? Ch. 16 - Prob. 6Q Ch. 16 - Prob. 7Q Ch. 16 - Prob. 8Q Ch. 16 - Prob. 9Q Ch. 16 - Prob. 10Q

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