Asked by
Hailey Martinez
on Oct 16, 2024
Verified
Hamasaki Company owns 30% of CDW Corp.stock and has significant influence.Hamasaki received $6,500 in cash dividends from its investment in CDW.The entry to record receipt of these dividends includes a debit to Cash for $6,500 and a credit to Equity Method Investments for $6,500.
Equity Method Investments
Accounting technique used by a company to record its investment in another company when it has significant influence but does not have a majority control.
Cash Dividends
Payments made by a corporation to its shareholders from earnings, typically on a quarterly basis, in the form of cash.
- Differentiate among diverse approaches to investment accounting based on the degree of control over the investee.
- Understand the particular accounting methodologies for unrealized gains and losses pertaining to securities.
Verified Answer
VP
Learning Objectives
- Differentiate among diverse approaches to investment accounting based on the degree of control over the investee.
- Understand the particular accounting methodologies for unrealized gains and losses pertaining to securities.
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