Question
Perdue Company had the following transactions pertaining to stock investments: February 1, Purchased 3,000 shares of Hudson Company (10% ownership) at the market price of
Perdue Company had the following transactions pertaining to stock investments:
February 1, Purchased 3,000 shares of Hudson Company (10% ownership) at the market price of $17 per share.
June 1, Received cash dividends of $6,000 on Hudson Company Stock. October 1, Sold 3,000 shares of Hudson stock for $54,000.
The entry to record the receipt of the dividends would include a:
A) debit to Long-Term Investment for $6,0000
B) credit to Long-Term Investment for $6,000
C) credit to Dividend Revenue for $6,000
D) debit to Dividend Revenue for $6,000
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475
