Coral LtdOwns 100% of Ambrose Ltd

question 29

Multiple Choice

Coral Ltd.owns 100% of Ambrose Ltd.Coral uses the cost method to record this subsidiary.Coral received $150,000 in dividends from Ambrose.What journal entry should Coral make on its consolidation worksheet with respect to the dividends?

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Definitions:

Journal Entry

The form of recording a transaction in a journal.

Maker

The entity or individual who creates or produces something, often used in contexts involving manufacturing or crafts.

Allowance for Doubtful Accounts

An accounting provision made to accommodate likely losses on accounts receivable due to customers being unable to pay.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate period for more accurate financial statements.