An Investor Owns 28% of the Outstanding Common Stock of Stokes

question 36

Multiple Choice

An investor owns 28% of the outstanding common stock of Stokes Corporation.Stokes Corporation declares and pays a $60,000 dividend.Which journal entry should the investor prepare?

• A)debit Equity-method Investment for $16,800 and credit Cash for $16,800
• B)debit Cash for $16,800 and credit Equity-method Investment for $16,800
• C)debit Cash for $16,800 and credit Dividend Revenue for $16,800
• D)debit Dividend Receivable for $16,800 and credit Dividend Revenue for $16,800

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The act or process of composing text or inscriptions.

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