Poultry Company Had the Following Transactions Pertaining to Stock Investments

question 105

Multiple Choice

Poultry Company had the following transactions pertaining to stock investments: a. February 1: Purchased 3500 shares of Hudson Company (10% ownership) at the market price of $16 per share. Poultry Company intends to keep the stock for more than one year and classifies the stock as available-for-sale.
B. June 1: Received cash dividends of $0.50 per share on Hudson Company stock.
C. October 1: Sold 3500 shares of Hudson stock for $59,500.
Which journal entry is prepared on June 1?

• A)debit Cash $2800 and credit Interest Revenue $2800
• B)debit Cash $3500 and credit Long-Term Investment for $3500
• C)debit Interest Receivable for $2800 and credit Interest Revenue for $2800
• D)debit Cash $2800 and credit Dividend Revenue for $2800

---

Definitions:

Pain Management

The medical specialty focused on the evaluation, treatment, and prevention of pain, aiming to improve the quality of life for those suffering from chronic or acute pain.

Return Demonstration

Participatory teaching method in which the technique is first described to the patient and then demonstrated to the patient; the patient is then asked to repeat the demonstration.

Participatory

Referring to a process or method that involves active participation, engagement, or involvement of all members of a group or community.

Sensory

Afferent neurons that carry sensory information from the periphery to the central nervous system.