Poultry Company Had the Following Transactions Pertaining to Stock Investments

question 62

Multiple Choice

Poultry Company had the following transactions pertaining to stock investments: a.February 1,Purchased 3,000 shares of Hudson Company (10% ownership) at the market price of $17 per share.Poultry Company intends to keep the stock for more than one year and classifies the stock as available-for-sale.
B.June 1,Received cash dividends of $0.50 per share on Hudson Company stock.
C.October 1,Sold 3,000 shares of Hudson stock for $54,000.
What journal entry is prepared on June 1?

• A)debit Cash $1,500 and credit Interest Revenue $1,500.
• B)debit Cash $3,000 and credit Long-Term Investment for $3,000.
• C)debit Interest Receivable for $1,500 and credit Interest Revenue for $1,500.
• D)debit Cash $1,500 and credit Dividend Revenue for $1,500.

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Definitions:

Material Culture

The physical objects, resources, and spaces that people use to define their culture, including buildings, artifacts, tools, and artwork.

Subculture

A cultural group within a larger culture, often having beliefs or interests at variance with those of the larger culture.

Folkways

Loosely enforced norms involving common customs, practices, or procedures that ensure smooth social interaction and acceptance.

Drinking Blood

is the consumption of blood as a cultural, religious, or dietary practice, seen in various societies and contexts.