Question
23) Vaughn Company had these transactions pertaining to stock investments: Feb. 1 Purchased 1980 shares of Pearl Company (10%) for $50490 cash. June 1 Received
23) Vaughn Company had these transactions pertaining to stock investments: Feb. 1 Purchased 1980 shares of Pearl Company (10%) for $50490 cash. June 1 Received cash dividends of $3 per share on Pearl stock. Oct. 1 Sold 1210 shares of Pearl stock for $32670. The entry to record the purchase of the Pearl stock would include a
credit to Cash for $45441.
debit to Stock Investments for $45441.
debit to Stock Investments for $50490.
debit to Investment Expense for $5049.
Coronado Company had these transactions pertaining to stock investments: Feb. 1 Purchased 2200 shares of Pearl Company (10%) for $56100 cash. June 1 Received cash dividends of $3 per share on Pearl stock. Oct. 1 Sold 1180 shares of Pearl stock for $31860. The entry to record the receipt of the dividends on June 1 would include a
debit to Dividend Revenue for $6600.
debit to Stock Investments for $6600.
credit to Stock Investments for $6600.
credit to Dividend Revenue for $6600.
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