Asked by
chenshi zhang
on Nov 13, 2024
Verified
Blanton Corporation purchased 15% of the outstanding shares of common stock of Worton Corporation as a long-term investment. Subsequently, Worton Corporation reported net income and declared and paid cash dividends. What journal entry would Blanton Corporation use to record the dividends it receives?
A) debit Investments-Worton Corporation; credit Cash
B) debit Cash; credit Dividend Revenue
C) debit Investments-Worton Corporation; credit Income of Worton Corporation
D) debit Cash; credit Investments-Worton Corporation
Dividend Revenue
Income received by investors from owning shares in a company, typically paid out from the company's profits.
Cash Dividends
Payments made by a corporation to its shareholders from its profit.
- Ascertain the appropriate accounting practices for handling dividends and interest from investments.
Verified Answer
ND
Learning Objectives
- Ascertain the appropriate accounting practices for handling dividends and interest from investments.