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.
The entry to record the purchase of the Norton stock would include a
credit to Cash for $48,800.
debit to Stock Investments for $48,800.
debit to Stock Investments for $50,200.