Question

wifty Company had these transactions pertaining to stock investments: Feb. 1 Purchased 1820 shares of Teal Mountain Company (10%) for $46410 cash. June 1 Received cash dividends of $2 per share on Teal Mountain stock. Oct. 1 Sold 1240 shares of Teal Mountain stock for $33480. The entry to record the receipt of the dividends on June 1 would include a

Answer 1

Credit to Dividend Revenue for $3,640

Step-by-step explanation:

Preparation of The entry to record the receipt of the dividends on June 1

Based on the information given if the company

on Feb. 1 made Purchased of 1820 shares of Teal Mountain Company in which on June 1 they Received a cash dividends of $2 per share on Teal Mountain stock which means that The entry to record the receipt of the dividends on June 1 a:Credit to Dividend Revenue for $3,640

Debit Cash$3,640

Credit Dividend revenue $3,640

(1820 shares*$2 per share)