Hardin Park Company Had These Transactions Pertaining to Stock Investments

question 56

Multiple Choice

Hardin Park Company had these transactions pertaining to stock investments Feb. 1 Purchased 5,000 shares of Raley Company (10%) for $89,000 cash.
June 1 Received cash dividends of $1 per share on Raley stock.
Oct) 1 Sold 2,000 shares of Raley stock for $39,000.
Dec) 1 Received cash dividends of $2 per share on Raley stock.
The entry to record the sale of the stock would include a

• A) debit to Cash for $35,600.
• B) credit to Gain on Sale of Stock Investments for $1,360.
• C) debit to Stock Investment for $35,600.
• D) credit to Gain on Sale of Stock Investments of $3,400.

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Definitions:

Precipitation

Any kind of water, either as a liquid or a solid, that drops from the clouds and lands on the Earth, covering types like rain, snow, sleet, and hail.

Gold Placer Deposits

Concentrations of gold found in sedimentary deposits, formed by gravity separation during sedimentary processes.

Caldera

A caldera is a large depression formed when a volcano erupts and collapses, following the emptying of the magma chamber below the volcano.

Weathered

The breakdown of rocks, soils, and minerals through contact with the Earth's atmosphere, water, and biological organisms.