This Question: 1 pt 14 of 21 (0 complete) This Quiz: 25 pts possib Poultry Compa

Question

This Question: 1 pt 14 of 21 (0 complete) This Quiz: 25 pts possib Poultry Company had the following transactions pertaining to stock investments: a. February 1: Purchased 2,500 shares of Hudson Company 10% o nership at the market price of $17 per share. Poultry Company intends to keep the stock for more than one year and b June 1: c. October 1: classifies the stock as available-for-sale Received cash dividends of $0.40 per share on Hudson Company stock. Sold 2,500 shares of Hudson stock for $45,000. Which journal entry is prepared on June 1? O A. debit Interest Receivable for $1,000 and credit Interest Revenue for $1,000 O B. debit Cash $1,000 and credit Dividend Revenue for $1,000. ° C. debit Cash $1,000 and credit Interest Revenue $1,000 O D. debit Cash $2,500 and credit Long-Term Investment for $2,500.

Explanation / Answer

Journal entry :

so answer is b) Debit cash $1000 and credit dividend revenue for $1000

Date accounts & explanation Debit credit Cash (2500*.40) 1000 Dividend revenue 1000

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