Segmental Manufacturing owns 35% of Glesson Corp.stock.Glesson pays a total of $47,000 in cash dividends for the period.Segmental's entry to record the dividend transaction would include a:
A)Credit to Long-Term Investments for $16,450.
B)Debit to Long-Term Investments for $16,450.
C)Debit to Cash for $47,000.
D)Credit to Cash for $16,450.
E)Credit to Investment Revenue for $47,000.

Question

Quizplus · Accepted Answer

Segmental Manufacturing owns 35% of Glesson Corp. stock, so it is entitled to 35% of the $47,000 in cash dividends paid by Glesson. This amounts to $16,450 ($47,000 x 35%). The entry to record the dividend transaction would include a credit to Long-Term Investments for $16,450.

Segmental Manufacturing Owns 35% of Glesson Corp