On January 1, 2019, X Inc. purchased 25% of the voting shares of Inc. for...
50.1K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2019, X Inc. purchased 25% of the voting shares of Inc. for $100,000. The investment is reported using the equity method, as X has significant influence over Y. Y's net income and declared dividends for the following three years are as follows: 2019 2020 Net Income $50,000 $70,000 $30,000 Dividends $20,000 $80,000 $60,000 2021 Which of the following journal entries would have to be made to record X's share of Y's dividends paid for 2021? Credit Debit $15,000 Cash Dividend income $15,000 Credit Cash Investment in Y Debit $15,000 $15,000 Debit $15.000 Credit Cash Dividend Income Investment in Y $12,5001 $2.500 No entry required
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
