Demure Company purchases 1000 common shares in Liberty Company on January 1, 2021, at $20 per share. The 1,000 common shares represent only 1% of Liberty's outstanding common shares. Demure intends to hold these shares for more than one year. Suppose that on September 31, 2021, Demure Company received $500 in cash dividends from Liberty Company. What is the account credited to record the transaction? Select one: O a. Interest Revenue b. Interest Receivable c. Dividend Revenue d. Cash
Demure Company purchases 1000 common shares in Liberty Company on January 1, 2021, at $20 per share. The 1,000 common shares represent only 1% of Liberty's outstanding common shares. Demure intends to hold these shares for more than one year. Suppose that on September 31, 2021, Demure Company received $500 in cash dividends from Liberty Company. What is the account credited to record the transaction? Select one: O a. Interest Revenue b. Interest Receivable c. Dividend Revenue d. Cash
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Demure Company purchases 1000 common shares in Liberty Company on January 1, 2021, at $20 per share. The 1,000 common shares represent only 1%
of Liberty's outstanding common shares. Demure intends to hold these shares for more than one year. Suppose that on September 31, 2021, Demure
Company received $500 in cash dividends from Liberty Company. What is the account credited to record the transaction?
Select one:
O
a. Interest Revenue
b. Interest Receivable
c. Dividend Revenue
d. Cash
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