On February 15, Jewel Company buys notes of Marcelo Corp. for $200,110. The investment is classified as long-term available-for-sale securities. This is the company's first and only investment in available-for-sale securities. The journal entry to record the purchase on February 15 is:
A. Debit Debt Investments-Trading $200,100; credit Cash $200,100.
B. Debit Debt Investments-Trading $200,110; credit Notes Payable $200,110.
C. Debit Long-Term Investments-AFS $200,110; credit Cash $200,110.
D. Debit Debt Investments-HTM $200,100; credit Cash $200,100.
E. Debit Debt Investments-AFS $200,110; credit Notes Payable $200,100.
Answer: C
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