Blanton Corporation purchased 15% of the outstanding shares of common stock of Worton Corporation as a long-term investment. Subsequently, Worton Corporation reported net income and declared and paid cash dividends. What journal entry would Blanton Corporation use to record the dividends it receives?

Question

Quizplus · Accepted Answer

When a company receives dividends from an investment in another company's stock, it records the receipt of cash by debiting Cash and credits Dividend Revenue, reflecting the income earned from the investment.

Blanton Corporation Purchased 15% of the Outstanding Shares of Common