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loss of $4,200.
4-
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.