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 receipt of the dividends would include a:
A) debit to Long-Term Investment for $6,000.
B) credit to Long-Term Investment for $6,000.
C) credit to Dividend Revenue for $6,000.
D) debit to Dividend Revenue for $6,000.
Correct Answer:
Verified
Correct Answer:
Verified
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