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 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.