Which of the Following Journal Entries Would Have to Be

question 53

Multiple Choice

Which of the following journal entries would have to be made to record X's share of Y's dividends paid for 2016?

• A)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Cash } & \$ 2,400 & \\
• \hline \text { Dividend Income } & & \$ 2,400 \\
• \hline
• \end{array}\]
• B)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Cash } & \$ 2,400 & \\
• \hline \text { Investment in } \mathrm { Y } & & \$ 2,400 \\
• \hline
• \end{array}\]
• C)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Investment in } Y & \$ 2,400 & \\
• \hline \text { Dividend Income } & & \$ 2,400 \\
• \hline
• \end{array}\]
• D)No entry requireD.Share of dividends = $20,000 x 12% = $2,400.

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