Nagen Company had these transactions pertaining to stock investments: Feb. 1 Purchased 3,000 shares of Horton Company

Question:

Nagen Company had these transactions pertaining to stock investments:
Feb. 1 Purchased 3,000 shares of Horton Company (10%) for $49,800 cash plus brokerage fees of $1,200.
June 1 received cash dividends of $2 per share on Horton stock.
Oct. 1 Sold 1,200 shares of Horton stock for $24,000 less brokerage fees of $600.
The entry to record the receipt of the dividends on June 1 would include a
a. Debit to Stock Investments for $6,000.
b. Credit to Revenue for $6,000.
c. Debit to Revenue for $6,000.
d. Credit to Stock Investments for $6,000

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...