Meyers Corporation acquired 20 of New Company\'s 5-year, 10%, $1,000 bonds for $

Question

Meyers Corporation acquired 20 of New Company's 5-year, 10%, $1,000 bonds for $22,000. In addtion, brokerage fees were $500. The entry to record the acquisitions of the bonds includes a debit to: OCash for $22,500 O Debt Investments for $22,500 Brokerage Fee Expense for $500 Debt Investments for $22,000 Question 3 2 pts Meyers Corporation sells its New Company bonds (from number 2 above) for $25,000. The journal entry to record the sale includes a credit to Cash for $25,000 O credit to Debt Investment for $25,000 O debit to Gain on Sale of Debt Investments for $2,500 credit to Gain on Sale of Debt Investments for $2,500 Question 4 2 pts Mack Corporation owns 10% of the common stock of Knife Corporation, when Mack receives $5,000 in cash dividends, the journal entry is

Explanation / Answer

Acquisition Cost includes Brokerage Fees. Total Acqisition Cost = $22000+$500=$22500

Debit Debt Investments for $22500

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