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:

Formal Therapy

Structured psychological treatment provided by a professional therapist in a clinical setting to address mental health issues.

Severe Disorders

Severe Disorders are intense, often debilitating conditions which significantly impact an individual's functioning in daily life; these can be mental, physical, or a combination of both.

Psychotherapy

The treatment of mental disorder or emotional challenges by psychological means rather than medical, often involving talking therapies with a trained professional.

Mild Disorders

Refers to psychological or psychiatric conditions that are present but not severe enough to significantly interfere with an individual’s daily functioning.