On May 26, Clark Co

Multiple Choice

On May 26, Clark Co. purchased 1,000 of Langston Corporation stock at $20 per share plus a $75 brokerage fee. These shares are categorized as trading securities. The journal entry to record the purchase is:

A) Debit Short-term Investments-Trading 20,000; debit Interest Expense 75; credit Cash 20,075.
B) Debit Cash 20,075; credit Short-term Investments-Trading 20,000; credit Gain on Sale of Short term Investments 75.
C) Debit Short-term Investments-Trading 20,000; credit Cash 20,000.
D) Debit Long-term Investments-HTM 20,075; credit Cash 20,075.
E) Debit Short-term Investments-Trading 20,075; credit Cash 20,075.