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Ashbrook Services,Inc

Question 70

Multiple Choice

Ashbrook Services,Inc.acquired 126,000 shares of Gamma Metals,Inc.on January 1,2017.Gamma declares a cash dividend of $2.25 per share on February 15,2017 and pays the cash dividend on March 2,2017.With the current investment,Ashbrook Services,Inc.holds 11% of Gamma's voting stock.Which of the following will be the correct journal entry for the day when the dividend payment is made (March 2,2017) ?


A)
Ashbrook Services,Inc.acquired 126,000 shares of Gamma Metals,Inc.on January 1,2017.Gamma declares a cash dividend of $2.25 per share on February 15,2017 and pays the cash dividend on March 2,2017.With the current investment,Ashbrook Services,Inc.holds 11% of Gamma's voting stock.Which of the following will be the correct journal entry for the day when the dividend payment is made (March 2,2017) ? A)    B)    C) No Entry D)
B)
Ashbrook Services,Inc.acquired 126,000 shares of Gamma Metals,Inc.on January 1,2017.Gamma declares a cash dividend of $2.25 per share on February 15,2017 and pays the cash dividend on March 2,2017.With the current investment,Ashbrook Services,Inc.holds 11% of Gamma's voting stock.Which of the following will be the correct journal entry for the day when the dividend payment is made (March 2,2017) ? A)    B)    C) No Entry D)
C) No Entry
D)
Ashbrook Services,Inc.acquired 126,000 shares of Gamma Metals,Inc.on January 1,2017.Gamma declares a cash dividend of $2.25 per share on February 15,2017 and pays the cash dividend on March 2,2017.With the current investment,Ashbrook Services,Inc.holds 11% of Gamma's voting stock.Which of the following will be the correct journal entry for the day when the dividend payment is made (March 2,2017) ? A)    B)    C) No Entry D)

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