Cronie Enterprises Purchased 10,000 Shares of Stock in Vector Corporation

question 79

Multiple Choice

Cronie Enterprises purchased 10,000 shares of stock in Vector Corporation for $15 per share.Cronie's broker arranged for Cronie to pay only $4 cash per share at the date of purchase with the remaining balance to be paid in monthly installments. Cronie should record the investment by:

• A) debiting the investment account for $40,000.
• B) debiting the investment account for $150,000.
• C) debiting the investment account for $100,000,and crediting a contra account for $60,000.
• D) not making an entry until the cost of the securities is paid in full.

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