Multiple Choice Question 40 At the time of acquisition of a debt investment, the Stock Investments account is debited when bonds are purchased. the Investment account is credited for its cost plus brokerage fees. no journal entry is required. the cost principle applies. 5- Multiple Choice Question 79 The account, Stock Investments, is a general ledger control account. another name for Debt Investments. a subsidiary ledger account. a long-term liability account. 6- Multiple Choice Question 59 Tan Company had these transactions pertaining to stock investments:
Feb. 1 Purchased 3,000 shares of Norton Company( 10 %) for $ 48,800 cash plus brokerage fees of $ 1,400.
June 1 Received cash dividends of $ 2 per share on Norton stock.
Oct. 1 Sold 1,200 shares of Norton stock for $ 24,000 less brokerage fees of $ 600.