Use This Information to Answer the Following Question The Entry to Record the Purchase of the Wayne Corporation

question 8

Multiple Choice

Use this information to answer the following question.These facts concern the long-term stock investments of Webster Corporation: $\begin{array}{ll}\text { June 1, } 2012 & \text { Pand cash for the followng long-term investments: } 5,000 \text { shares Wayne } \\& \text { Corporation common stock (representing } 5 \text { percent of outstanding stock) at } \\& \$ 40 \text { per share; } 3,000 \text { shares Upshur Corporation common stock (representing } \\&\text { percent of outstanding stock) at } \$ 24 \text { per share. } \\\text { Dec. } 31,2012 & \text { Quoted market prices at year end: Wayne common stock, } \$ 35 \text {; Upshur }\\& \begin{array}{l}\text { common stock, } \$ 27 .\end{array} \\\text { April 1, } 2013 & \begin{array}{l}\text { A change in policy required the sale of 1,000 shares of Wayne Corporation } \\\text { common stock at } \$ 38 .\end{array} \\\text { July 1, 2013 } & \begin{array}{l}\text { Received a cash dividend from Upshur Corporation equal to } \$ .30 \text { per share. }\end{array} \\\text { Dec. 31, 2013 } & \begin{array}{l}\text { Quoted market prices at year end: Wayne common stock, } \$ 39 \text {; Ushur } \\\text { common stock } \$ 22 .\end{array}\end{array}$ The entry to record the purchase of the Wayne Corporation common stock is:

• A) Long-Term Investments 272,000
• Cash 272,000
• B) Long-Term Investments 120,000
• Cash 120,000
• C) Long-Term Investments 72,000
• Cash 72,000
• D) Long-Term Investments 200,000
• Cash 200,000

---

Definitions:

Alfred Lindesmith

A sociologist known for his studies on drug addiction and for being an early critic of the US drug policy.

Prescription Drug

A prescription drug is medication legally prescribed by a healthcare professional for a specific health condition.

OxyContin

A prescription opioid pain medication known for its potential for abuse and its role in the opioid addiction crisis.

Drug Abuse

The misuse of drugs or substances in a way that is harmful to the individual or society.