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Gaines Corporation invested $120,000 to acquire 29,000 shares of Owens Technologies, Inc. on March 1, 2024. On July 2, 2025, Owens pays a cash dividend of $2.75 per share. The investment Kis classified as equity securities with no significant influence. Which of the following is the correct journal entry to record the transaction on July 2, 2025? OA. Cash Equity Investments 79,750 79,750 OB. Equity Investments Cash 79,750 79,750 OC. Cash 79,750 Retained Earnings 79,750 OD. Cash 79,750 Dividend Revenue 79,750

Gaines Corporation invested $120,000 to acquire 29,000 shares of Owens Technologies, Inc. on March 1, 2024. On July 2, 2025, Owens pays a cash dividend of $2.75 per share. The investment Kis classified as equity securities with no significant influence. Which of the following is the correct journal entry to record the transaction on July 2, 2025? OA. Cash Equity Investments 79,750 79,750 OB. Equity Investments Cash 79,750 79,750 OC. Cash 79,750 Retained Earnings 79,750 OD. Cash 79,750 Dividend Revenue 79,750

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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K Gaines Corporation invested $120,000 to acquire 29,000 shares of Owens Technologies, Inc. on March 1, 2024. On July 2, 2025, Owens pays a cash dividend of $2.75 per share. The investment is classified as equity securities with no significant influence. Which of the following is the correct journal entry to record the transaction on July 2, 2025? OA. Cash Equity Investments 79,750 79,750 OB. Equity Investments 79,750 Cash 79,750 OC. Cash 79,750 Retained Earnings 79,750 OD. Cash 79,750 Dividend Revenue 79,750
Transcribed Image Text:K Gaines Corporation invested $120,000 to acquire 29,000 shares of Owens Technologies, Inc. on March 1, 2024. On July 2, 2025, Owens pays a cash dividend of $2.75 per share. The investment is classified as equity securities with no significant influence. Which of the following is the correct journal entry to record the transaction on July 2, 2025? OA. Cash Equity Investments 79,750 79,750 OB. Equity Investments 79,750 Cash 79,750 OC. Cash 79,750 Retained Earnings 79,750 OD. Cash 79,750 Dividend Revenue 79,750
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