An investor purchased $50,000 of 10-year bonds it intends to hold to maturity. The investor's journal entry to record the purchase is a debit to Debt InvestmentsHTM for $50,000 and a credit to Cash for $50,000.

True or False

Question #2 A company reported net income of $225,000, net sales of $2,500,000, and average total assets of $2,100,000 for the current year. Calculate this company's profit margin, total asset turnover, and return on total assets.

Question #3 Explain how to record the sale of trading securities.