Poultry Company Had the Following Transactions Pertaining to Stock Investments

Multiple Choice

Poultry Company had the following transactions pertaining to stock investments: a. February 1: Purchased 3500 shares of Hudson Company (10% ownership) at the market price of $16 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 3500 shares of Hudson stock for $59,500.
Which journal entry is prepared on June 1?

A) debit Cash $2800 and credit Interest Revenue $2800
B) debit Cash $3500 and credit Long-Term Investment for $3500
C) debit Interest Receivable for $2800 and credit Interest Revenue for $2800
D) debit Cash $2800 and credit Dividend Revenue for $2800