At the time of acquisition of a debt investment

A) no journal entry is required.
B) the historical cost principle applies.
C) the Stock Investments account is debited when bonds are purchased.
D) the Investment account is credited for its cost plus brokerage fees.

Historical Cost Principle

An accounting principle that states that assets should be recorded and reported at their original purchase cost.

Stock Investments Account

An account on the balance sheet that represents the cost of buying and holding shares of another company.

Brokerage Fees

Charges paid to a broker for executing transactions or providing specialized services.