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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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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