Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On February 15, Jewel Company buys 6,600 shares of Marcelo Corp. common stock at $28.67 per share plus a brokerage fee of $400. The stock

On February 15, Jewel Company buys 6,600 shares of Marcelo Corp. common stock at $28.67 per share plus a brokerage fee of $400. The stock is classified as available-for-sale securities.This is the company's first and only investment in available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.19 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp. stock on November 17 of the current year for $29.44 per share less a brokerage fee of $250. The journal entry to record the dividend on April 15 is:

Multiple Choice:

  • Debit Cash $7,854; credit Dividend Revenue $7,854.
  • Debit Cash $7,854; credit Interest Revenue $7,854.
  • Debit Cash $6,981; credit Interest Revenue $6,981.
  • Debit Cash $7,854; credit Gain on Sale of Investments $7,854.
  • Debit Cash $6,981; credit Dividend Revenue $6,981.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

12th Canadian edition

119-49633-5, 1119496497, 1119496330, 978-1119496496

More Books

Students also viewed these Accounting questions

Question

1. Why do we trust one type of information more than another?

Answered: 1 week ago