Matthew Company Purchases a Trading Security for $12,000 Cash

Multiple Choice

Matthew Company purchases a trading security for $12,000 cash. The journal entry to record this transaction will include a:

A) debit to the Investment in Trading Securities account and a credit to Cash.
B) debit to Cash and a credit to the Investment in Trading Securities account.
C) debit to the Long-term Investment account and a credit Cash.
D) debit to the Unrealized Loss on Trading Securities account and a credit to Cash.