Grifin Corporation invested $ 132,000to acquire 23,000 shares of Deita Technolog

Question

Grifin Corporation invested $ 132,000to acquire 23,000 shares of Deita Technologies, Inc. on March 1,2017.On July 2, 2017, Deita pays a cash dividend of $1.75 per share. The investment is classified as an available-for-sale investment. Which of the following is the correct journal entry to record the transaction on July 2, 2017? O A Cash O B. Cash 40,250 40,250 Long-term Investments-Available-for-Sale Long-term Investments Trading Investments Dividend Revenue 40,250 40,250 O C. Cash 40,250 O D. Cash 40.250 40,250 Long-term Investments-Held-so-Maturity Cick to select your answer 20 a 5

Explanation / Answer

1 Total assets 109000 Total liabilities 70000 Total equity 39000 Debt to equity ratio = Total liabilities / stockholders equity Debt to equity ratio 1.79 (70000/39000) Correct answer is C 2 Bond value 1004000 Interest rate 14% Interest paid in cash 70280 (1004000*14%*6/12) Correct answer is A

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