Question
On January 2, 2017, Dooley Corporation purchased 12% of Roller Corporation's common stock for $50,000. On December 15, 2017, Roller paid a cash dividend of
On January 2, 2017, Dooley Corporation purchased 12% of Roller Corporation's common stock for $50,000. On December 15, 2017, Roller paid a cash dividend of $10,000 to its shareholders. Roller's net income for the year ended December 31, 2017 was $60,000. What journal entry will Dooley post to recognize revenue from Roller?
Debit Cash $7,200; Credit Investment Revenue $7,200
Debit Cash $1,200 and Investment in Roller $7,200; Credit Investment Revenue $8,400
Debit Cash $1,200; Credit Investment Revenue $1,200
Debit Cash $8,400; Credit Investment Revenue $8,400
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
14th Edition
1119707110, 978-1119707110
