Asked by
Austin Tuttle
on Dec 07, 2024Verified
Coral Limited acquired a 40% investment in Reef Limited for $120 000. Reef declared and paid a dividend of $30 000. Coral Limited does not prepare consolidated financial statements. The appropriate entry for the investor to record this dividend is:
A) DR Dividends payable $12 000; CR Cash $12 000
B) DR Cash $12 000; CR Dividend revenue $12 000
C) DR Cash $12 000; CR Investment in associate $12 000
D) DR Investment in associate $12 000; CR Dividend revenue $12 000.
Dividend Revenue
Income received from investments in the form of dividends, representing a share of a company's profits distributed to its shareholders.
- Account for dividends received from an investment in an associate.
Verified Answer
WS
Learning Objectives
- Account for dividends received from an investment in an associate.
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