On February 15, Jewel Company buys 6,900 shares of Marcelo Corp. common stock at

Question

On February 15, Jewel Company buys 6,900 shares of Marcelo Corp. common stock at $28.64 per share plus a brokerage fee of $400. The stock Is classified as avallable-for-sale securitles. This is the company's first and only Investment In avallable-for-sale securitles. On March 15, Marcelo Corp. declares a dividend of $1.16 per share payable to stockholders of record on Aprll 15. Jewel Company recelved the dividend on April 15 and ultimately sells half of the Marcelo Corp. stock on November 17 of the current year for $29.41 per share less a brokerage fee of $250. The journal entry to record the dividend on April 15 Is Multiple Choice Debit Cash $8,004: credit Interest Revenue $8,004. Deblt Cash $7177; credit Dividend Revenue $7177. Debit Cash $8,004; credit Galn on Sale of Investments $8,004. Deblt Cash $7177; credit Interest Revenue $7177 Debit Cash $8,004; credit Dividend Revenue $8,004

Explanation / Answer

Answer is E

General Journal Debit Credit Cash(6,900 * $1.16) $8,004 Dividend Revenue $8,004

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