Blaine Company had these transactions pertaining to stock investments: Feb. 1 Purchased 2000 shares of Horton Company (10%) for $51000 cash.
June 1 Received cash dividends of $2 per share on Horton stock.
Oct.1 Sold 1200 shares of Horton stock for $32400.
The entry to record the purchase of the Horton stock would include a
A) debit to Stock Investments for $45900.
B) credit to Cash for $45900.
C) debit to Stock Investments for $51000.
D) debit to Investment Expense for $5100.

Question

Quizplus · Accepted Answer

When purchasing stock, the account to be debited is Stock Investments for the amount paid, which in this case is $51,000. Cash would be credited for the same amount.

Blaine Company Had These Transactions Pertaining to Stock Investments: Feb