Hardin Park Company Had These Transactions Pertaining to Stock Investments

question 278

Multiple Choice

Hardin Park Company had these transactions pertaining to stock investments Feb. 1 Purchased 2,500 shares of Raley Company (10%) for $44,500 cash.
June 1 Received cash dividends of $1 per share on Raley stock.
Oct) 1 Sold 1,000 shares of Raley stock for $19,500.
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 $3,000.
• B) credit to Dividend Revenue of $3,000.
• C) debit to Dividend Revenue of $3,000.
• D) credit to the Stock Investments of $3,000.

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Definitions:

Demand for Labor

The total amount of labor that employers want to hire at various wage rates.

Marginal Revenue

The additional income earned by selling one more unit of a good or service.

Marginal Product

The increase in output that results from a one-unit increase in the quantity of a single input while holding other inputs constant.

Marginal Productivity Theory

An economic theory that suggests the value of a good or service is determined by the marginal productivity of the inputs used in its production.