When a Parent Company Purchases Shares in a Subsidiary Company

Multiple Choice

When a parent company purchases shares in a subsidiary company for cash and the shares are cum div,the journal entry in the parent's accounts is:

A) Debit Shares in subsidiary Debit Dividend receivable Credit Cash
B) Debit Shares in subsidiary Credit Cash Credit Dividend payable
C) Debit Dividend payable Credit Cash
D) Debit Cash Credit Dividend revenue