Hardin Park Company had these transactions pertaining to stock investments Feb.

Question

Hardin Park Company had these transactions pertaining to stock investments

Feb. 1     Purchased 2,500 shares of Raley Company (10%) for $44,500 cash.

June 1    Received cash dividends of $1 per share on Raley stock.

Oct. 1     Sold 1,000 shares of Raley stock for 19,500.

                     Dec. 1    Received cash dividends of $2 per share on Reley stock.

The entry to record the purchase of the Raley stock would include a

Answer

debit to the Stock Investments account for $43,500.

credit to Cash for $43,500.

debit to the Stock Investments account for $44,500.

debit to Investment Expense for $1,000.

debit to the Stock Investments account for $43,500.

credit to Cash for $43,500.

debit to the Stock Investments account for $44,500.

debit to Investment Expense for $1,000.

Explanation / Answer

debit to the Stock Investments account for $44,500.

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