Acquiring 8% of the common stock of another company: Debit: Stock Investments (to record the purchase of stock) Credit: Cash (to record the outflow of cash for the purchase) Dividends received from the investee: Debit: Cash (to record the receipt of cash dividends) Credit: Dividend Revenue (to record the income earned from dividends) Selling a stock investment for more than its cost: Debit: Cash (to record the receipt of cash from the sale)