Multiple Choice
An investor owns 28% of the outstanding common stock of Stokes Corporation.Stokes Corporation declares and pays a $60,000 dividend.Which journal entry should the investor prepare?
A) debit Equity-method Investment for $16,800 and credit Cash for $16,800
B) debit Cash for $16,800 and credit Equity-method Investment for $16,800
C) debit Cash for $16,800 and credit Dividend Revenue for $16,800
D) debit Dividend Receivable for $16,800 and credit Dividend Revenue for $16,800
Correct Answer:
Verified
Correct Answer:
Verified
Q31: An investor receives a cash dividend from
Q32: Under the equity method of accounting for
Q33: If an investor owns between 20% and
Q34: Wolverine Corporation owns 27% of Buckeye Corporation.Net
Q35: On January 1,2019,Walker Company pays $10 million
Q37: An investor owns 32% of the outstanding
Q38: Smith Corporation purchases $620,000 of TMI Corporation's
Q39: Investments in equity securities with insignificant influence
Q40: Under the equity method,if the investee company
Q41: An investor who may significantly influence the