293 (Dividends). Transactions December, Todd Company acquired 35% of the outstanding stock of McGuire Company for $250,000. For the year ending, December 31, McGuire earned income of $100,000 and paid dividends of $20,000. Prepare the entries for Todd company for the dividends received from McGuire Debit Cash \$20,000; Dividends Income $20,000 Debit Cash \$7,000; Dividends Income $7,000 Debit Dividends $7,000; Credit Cash $7,000