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Poundcake Company owns 10,000 shares (10% of total shares) of Joshua, Inc. Joshua declares and pays a cash dividend of $0.50 per share. Poundcake first
Poundcake Company owns 10,000 shares (10% of total shares) of Joshua, Inc. Joshua declares and pays a cash dividend of $0.50 per share. Poundcake first records dividends when cash is received. Upon receipt of the cash dividend, what entry should Poundcake make?
Select one:
A.
| Cash | 5,000 |
|
|
| Stock InvestmentJoshua |
| 5,000 |
B.
| Cash | 5,000 |
|
|
| Dividend Income |
| 5,000 |
C.
| Dividends Receivable | 5,000 |
|
|
| Dividend Income |
| 5,000 |
D.
| Cash | 5,000 |
|
|
| Dividends Receivable |
| 5,000 |
Note: It's not D.
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