Hardin Park Company Had These Transactions Pertaining to Stock Investments

question 65

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 receipt of the dividends Dec. 1 would include a

• A) debit to Stock Investments of $6,000.
• B) credit to Dividend Revenue of $6,000.
• C) debit to Dividend Revenue of $6,000.
• D) credit to the Stock Investments of $6,000.

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Definitions:

Attaches

The process or moment when a legal right, interest, or lien is officially joined or connected to property or assets.

Secured Interest

A legal claim or lien on assets which is established to secure payment or performance of an obligation.

Default

Failure to fulfill a legal obligation, especially failing to make a required payment or perform a contractual duty.

Court Order

A directive issued by a judge that requires a party to do or abstain from doing something.