Nagen Company had these transactions pertaining to stock investments:
Feb) 1 Purchased 3,000 shares of Horton Company (10%) for $49,800 cash plus brokerage fees of $1,200.
June 1 Received cash dividends of $2 per share on Horton stock.
Oct) 1 Sold 1,200 shares of Horton stock for $24,000 less brokerage fees of $600.
The entry to record the purchase of the Horton stock would include a
A) debit to Stock Investments for $49,800.
B) credit to Cash for $49,800.
C) debit to Stock Investments for $51,000.
D) debit to Investment Expense for $1,200.
Correct Answer:
Verified
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