Tan Company had these transactions pertaining to stock investments: Feb. 1 Purch

Question

Tan Company had these transactions pertaining to stock investments: Feb. 1 Purchased 3,000 shares of Norton Company (10%) for $49,800 cash plus brokerage fees of $1,200. June 1 Received cash dividends of $3 per share on Norton stock. Oct. 1 Sold 1,200 shares of Norton stock for $24,000 less brokerage fees of $600. The entry to record the receipt of the dividends on June 1 would include a......A) credit to stock investments 9000... B) debit to dividend revenue 9000... C) debit to stock investments 9000...D) credit to dividend revenue 9000

Explanation / Answer

Tan Company had these transactions pertaining to stock investments: Feb. 1 Purchased 3,000 shares of Norton Company (10%) for $49,800 cash plus brokerage fees of $1,200. June 1 Received cash dividends of $3 per share on Norton stock. Oct. 1 Sold 1,200 shares of Norton stock for $24,000 less brokerage fees of $600. The entry to record the receipt of the dividends on June 1 would include a......

A) credit to stock investments 9000...

B) debit to dividend revenue 9000...

C) debit to stock investments 9000...

D) credit to dividend revenue 9000

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