Which of the Following Journal Entries Would Have to Be

question 27

Multiple Choice

Which of the following journal entries would have to be made to record X's share of Y's dividends paid for 2018?

• A)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Cash } & \$ 15,000 & \\
• \hline \text { Dividend Income } & & \$ 15,000 \\
• \hline
• \end{array}\]
• B)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Cash } & \$ 15,000 & \\
• \hline \text { Imvestment in } Y & & \$ 15,000 \\
• \hline
• \end{array}\]
• C)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Cash } & \$ 15,000 & \\
• \hline \text { Dividend Income } & & \$ 12,500 \\
• \hline \text { Inestment in } Y & & \$ 2,500 \\
• \hline
• \end{array}\]
• D)No entry requireD.Share of dividends = $60,000 x 25% = $15,000.

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Definitions:

Behavior

Actions or reactions of an individual or group in response to external or internal stimuli.

Remittitur

A court-ordered reduction of an excessive jury verdict in a civil case.

Trial Court

The court where a case is initially tried, involving presentation of evidence and witness testimony before a judge or jury for a verdict.

Prima Facie

Latin for 'at first sight,' it refers to evidence or facts that are sufficient to prove a case or establish a claim unless disproven by other evidence.