Question
Hagen Company had these transactions pertaining to stock investments Feb. 1 Purchased 2,000 shares of Farley Company (10%) for $33,200 cash plus brokerage fees of
Hagen Company had these transactions pertaining to stock investments
Feb. 1 Purchased 2,000 shares of Farley Company (10%) for $33,200 cash plus brokerage fees of $800.
June 1 Received cash dividends of $2 per share on Farley stock.
Oct. 1 Sold 800 shares of Farley stock for $16,000 less brokerage fees of $400.
Dec. 1 Received cash dividends of $2 per share on Farley stock.
The entry to record the receipt of the dividends June 1 would include a
| A. | debit to Stock Investments of $4,000. |
| B. | credit to Dividend Revenue of $4,000. |
| C. | debit to Dividend Revenue of $4,000. |
| D. | credit to the Stock Investments of $4,000. |
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Taxation Of Individuals And Business Entities 2015
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
6th Edition
978-1259206955, 1259206955, 77862368, 978-0077862367
