Chung Owns 40% of Lu's Common Stock

question 47

Multiple Choice

Chung owns 40% of Lu's common stock. Lu pays $97,000 in total cash dividends to its shareholders. Chung's entry to record this transaction should include a:

• A) Debit to Dividends for $97,000.
• B) Debit to Dividends for $38,800.
• C) Debit to Long-Term investments for $97,000.
• D) Credit to Long-Term Investments for $38,800.
• E) Credit to Cash for $97,000.

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