The Journal Entry to Record the Receipt of a Stock

question 50

Multiple Choice

The journal entry to record the receipt of a stock dividend arising from an available-for-sale investment held by a company includes:

• A)a debit to Unrealized Gain on Investment and a credit to Dividend Revenue.
• B)a debit to Cash and a credit to Dividend Revenue.
• C)a debit to Cash and a credit to Unrealized Gain on Investments.
• D)no journal entry. Only a memorandum entry is required.

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