Perdue Company Had the Following Transactions Pertaining to Stock Investments

question 19

Multiple Choice

Perdue Company had the following transactions pertaining to stock investments: - February 1, Purchased 3,000 shares of Hudson Company (10% ownership) at the market price of $17 per share.
- June 1, Received cash dividends of $6,000 on Hudson Company stock.
- October 1, Sold 3,000 shares of Hudson stock for $54,000.
The entry to record the purchase of the Hudson stock would include a:

• A) debit to Long-Term Investment for $51,000.
• B) credit to Long-Term Investment for $51,000.
• C) credit to Dividend Revenue for $6,000.
• D) debit to Short-Term Investment for $6,000.

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Definitions:

Reward Model

A system or framework designed to provide incentives or rewards based on certain behaviors or achievements.

Crowdfunders

Individuals who collectively invest or donate small amounts of money towards a project, product, or venture typically through an online platform.

Prizes

Awards or rewards given for a specific achievement or competition.

Patronage Model

A crowdfunding model where backers do not expect any direct return for their donation or investment.