Blaine Company had these transactions pertaining to stock investments:
Feb. 1 Purchased 2,000 shares of Horton Company (10%) for $51,000 cash.
June 1 Received cash dividends of $3 per share on Horton stock.
Oct. 1 Sold 1,200 shares of Horton stock for $32,400.
The entry to record the receipt of the dividends on June 1 would include a
A) debit to Stock Investments for $6000.
B) credit to Dividend Revenue for $6000.
C) debit to Dividend Revenue for $6000.
D) credit to Stock Investments for $6000.

Question

Blaine Company had these transactions pertaining to stock investments:
Feb. 1  Purchased 2,000 shares of Horton Company (10%) for $51,000 cash.
June 1  Received cash dividends of $3 per share on Horton stock.
Oct. 1  Sold 1,200 shares of Horton stock for $32,400.
The entry to record the receipt of the dividends on June 1 would include a
A) debit to Stock Investments for $6000.
B) credit to Dividend Revenue for $6000.
C) debit to Dividend Revenue for $6000.
D) credit to Stock Investments for $6000.

Quizplus · Accepted Answer

The entry to record the receipt of dividends includes a credit to Dividend Revenue for the amount of dividends received.

Blaine Company Had These Transactions Pertaining to Stock Investments