Which of the Following Journal Entries Would Have to Be

question 15

Multiple Choice

Which of the following journal entries would have to be made to record X's share of Y's dividends paid for 2017?

• A)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Cash } & \$ 9,600 & \\
• \hline \text { Dividend Income } & & \$ 9,600 \\
• \hline
• \end{array}\]
• B)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Cash } & \$ 9,600 & \\
• \hline \text { Investment in } Y & & \$ 9,600 \\
• \hline
• \end{array}\]
• C)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Cash } & \$ 9,600 & \\
• \hline \text { Dividend Income } & & \$ 8,400 \\
• \hline \text { Inestment in } Y & & \$ 1,200 \\
• \hline
• \end{array}\]
• D)No entry requireD.Share of dividends = $80,000 x 12% = $9,600.

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