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jorchid
Jul 21, 2009, 10:46 AM
A company invests cash with an entity that promised 100% interest on their investment. Should the cash invested be posted to an equity account or an asset account?

hamzashakaa
Jul 21, 2009, 11:40 PM
The investee company should record the following entry:

Dr. CASH
Cr. Equity (common stock)

The investor should record:

Dr. Investment
Cr. Cash