Question
ABC Company purchased 4,500 shares of Teal Company's common stock for $18,000. Teal Company has $22,500 shares of stock outstanding. Teal Company pays dividends of
ABC Company purchased 4,500 shares of Teal Company's common stock for $18,000. Teal Company has $22,500 shares of stock outstanding. Teal Company pays dividends of $50,000 to its shareholders. ABC's journal entry to record the dividend receipt will include a a.credit to Investment in Teal Company for $50,000. b.debit to Cash for $50,000. c.credit to Investment in Teal Company for $10,000. d.debit to Investment in Teal Company for $50,000.
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Managerial Accounting An Introduction to Concepts Methods and Uses
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
11th edition
1111571260, 978-1111571269
