Autumn Services, Inc. acquired 108,000 shares of Spring Metals, Inc. on January 1, 2024. Spring declares a cash dividend of $1.25 per share on February 15, 2025 and pays the cash dividend on March 2, 2025. With the current investment, Autumn Services, Inc. holds 9% of Spring's voting stock. Which of the following will be the correct journal entry for the day when the dividend payment is made (March 2, 2025)? O Cash 135,000 Dividend Receivable O Cash O Retained Earnings Cash Equity Investments No Entry 135,000 135,000 135,000 135,000 135,000

Autumn Services, Inc. acquired 108,000 shares of Spring Metals, Inc. on January 1, 2024. Spring declares a cash dividend of $1.25 per share on February 15, 2025 and pays the cash dividend on March 2, 2025. With the current investment, Autumn Services, Inc. holds 9% of Spring's voting stock. Which of the following will be the correct journal entry for the day when the dividend payment is made (March 2, 2025)? O Cash 135,000 Dividend Receivable O Cash O Retained Earnings Cash Equity Investments No Entry 135,000 135,000 135,000 135,000 135,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 14P

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