Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 9

Montero Co. holds 100,000 common shares (40%) of ORD Corp. as a long-term investment. ORD Corp. paid a $100,000 dividend on November 1, 2015, and reported a net income of $700,000 for 2015. Prepare Montero's entries to record ( a ) the receipt of the dividend and ( b ) the December 31, 2015, year-end adjustment required for the investment account.