What Would Be the Journal Entry to Record the Dividends

question 6

Multiple Choice

What would be the journal entry to record the dividends declared by King Corp during the year?

• A)
• \(\begin{array}{|l|l|l|}
• \hline & \text { Debit } & \text { Credit } \\
• \hline \begin{array}{l}
• \text { Dividends } \\
• \text { receivable }
• \end{array} & \$ 30,000 & \\
• \hline \begin{array}{l}
• \text { Investment } \\
• \text { in Kong }
• \end{array} & & \$ 30,000 \\
• \hline
• \end{array}\)
• B)
• \(\begin{array}{|l|l|l|}
• \hline & \text { Debit } & \text { Credit } \\
• \hline \begin{array}{l}
• \text { Dividends } \\
• \text { receiv able }
• \end{array} & \$ 30,400 & \\
• \hline \begin{array}{l}
• \text { Investment } \\
• \text { in Kong }
• \end{array} & & \$ 30,400 \\
• \hline
• \end{array}\)
• C)
• \(\begin{array}{|l|l|l|}
• \hline& \text { Debit } & \text { Credit } \\
• \hline \begin{array}{l}
• \text { Dividends } \\
• \text { receivable }
• \end{array} & \$ 30,000 & \\
• \hline \begin{array}{l}
• \text { Dividend } \\
• \text { income }
• \end{array} & & \$ 30,000 \\
• \hline
• \end{array}\)
• D)No entry.

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