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Gaines Corporation invested $124,000 to acquire 21,000 shares of Owens Technologies, Inc. on March 1, 2024. On July 2, 2025, Owens pays a cash dividend of $1.25 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? O Cash 26,250 Equity Investments O Cash Dividend Revenue O Equity Investments Cash O Cash Retained Earnings 26,250 26,250 26,250 26,250 26,250 26,250 26,250

Gaines Corporation invested $124,000 to acquire 21,000 shares of Owens Technologies, Inc. on March 1, 2024. On July 2, 2025, Owens pays a cash dividend of $1.25 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? O Cash 26,250 Equity Investments O Cash Dividend Revenue O Equity Investments Cash O Cash Retained Earnings 26,250 26,250 26,250 26,250 26,250 26,250 26,250

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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Gaines Corporation invested $124,000 to acquire 21,000 shares of Owens Technologies, Inc. on March 1, 2024. On July 2, 2025, Owens pays a cash dividend of $1.25 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? - Option 1: - Debit: Cash 26,250 - Credit: Equity Investments 26,250 - Option 2: - Debit: Cash 26,250 - Credit: Dividend Revenue 26,250 - Option 3: - Debit: Equity Investments 26,250 - Credit: Cash 26,250 - Option 4: - Debit: Cash 26,250 - Credit: Retained Earnings 26,250
Transcribed Image Text:Gaines Corporation invested $124,000 to acquire 21,000 shares of Owens Technologies, Inc. on March 1, 2024. On July 2, 2025, Owens pays a cash dividend of $1.25 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? - Option 1: - Debit: Cash 26,250 - Credit: Equity Investments 26,250 - Option 2: - Debit: Cash 26,250 - Credit: Dividend Revenue 26,250 - Option 3: - Debit: Equity Investments 26,250 - Credit: Cash 26,250 - Option 4: - Debit: Cash 26,250 - Credit: Retained Earnings 26,250
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