On May 26, Clark Co

Multiple Choice

On May 26, Clark Co. purchased 1,000 of Langston Corporation stock at $20 per share plus a $75 brokerage fee. These shares are categorized as trading securities. Clark received a $1,500 quarterly cash dividend on the Langston shares. The journal entry to record the dividend is:

A) Debit Cash 1,500; credit Interest Revenue 1,500.
B) Debit Dividend Receivable 1,500; credit Dividend Revenue 1,500.
C) Debit Cash 1,500; credit Dividend Receivable 1,500.
D) Debit Cash 1,500; credit Dividend Revenue 1,500.
E) Debit Cash 1,500; credit Investment in Langston Corp.1,500.