Balance sheet question?

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A company pays cash for a U.S. savings bond. The bond, I'm assuming, would be listed as an asset. What is the corresponding liability or equity.

2007-09-20 16:11:36 · 2 answers · asked by Jay J 1 in Business & Finance ➔ Investing

The company that pays cash credits banks or petite cash account and debits investments, both are assets but the outflow of cash is posted as debit.

2007-09-20 16:57:44 · answer #1 · answered by Classy 7 · 0⤊ 0⤋

The journal entry would be

Debit: Investment (Asset)
Credit: Cash (Asset)

2007-09-20 16:42:16 · answer #2 · answered by Mike 1 · 0⤊ 0⤋