Autumn Services, Inc. acquired 108,000 shares of Spring Metals, Inc. on January 1, 2024. Spring declares a cash dividend of $1.25 per share on February 15, 2025 and pays the cash dividend on March 2, 2025. With the current investment, Autumn Services, Inc. holds 9% of Spring's voting stock. Which of the following will be the correct journal entry for the day when the dividend payment is made (March 2, 2025)? O Cash 135,000 Dividend Receivable O Cash O Retained Earnings Cash Equity Investments No Entry 135,000 135,000 135,000 135,000 135,000
Autumn Services, Inc. acquired 108,000 shares of Spring Metals, Inc. on January 1, 2024. Spring declares a cash dividend of $1.25 per share on February 15, 2025 and pays the cash dividend on March 2, 2025. With the current investment, Autumn Services, Inc. holds 9% of Spring's voting stock. Which of the following will be the correct journal entry for the day when the dividend payment is made (March 2, 2025)? O Cash 135,000 Dividend Receivable O Cash O Retained Earnings Cash Equity Investments No Entry 135,000 135,000 135,000 135,000 135,000
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 14P
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![Autumn Services, Inc. acquired 108,000 shares of Spring Metals, Inc. on January 1, 2024. Spring declares a cash dividend of $1.25 per share on February 15, 2025
and pays the cash dividend on March 2, 2025. With the current investment, Autumn Services, Inc. holds 9% of Spring's voting stock. Which of the following will be
the correct journal entry for the day when the dividend payment made (March 2, 2025)?
Cash
135,000
Dividend Receivable
Cash
Retained Earnings
Cash
Equity Investments
No Entry
135,000
135,000
135,000
135,000
135,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7fb4ecaf-dfa5-4eb5-9d22-34d3c906aa04%2F677d92e2-97ef-4204-aceb-4ddf6c8f9685%2Fyny3n2s_processed.png&w=3840&q=75)
Transcribed Image Text:Autumn Services, Inc. acquired 108,000 shares of Spring Metals, Inc. on January 1, 2024. Spring declares a cash dividend of $1.25 per share on February 15, 2025
and pays the cash dividend on March 2, 2025. With the current investment, Autumn Services, Inc. holds 9% of Spring's voting stock. Which of the following will be
the correct journal entry for the day when the dividend payment made (March 2, 2025)?
Cash
135,000
Dividend Receivable
Cash
Retained Earnings
Cash
Equity Investments
No Entry
135,000
135,000
135,000
135,000
135,000
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