Tool Co.received cash dividends of $3.5 per share on 300 Sharp Systems Inc.shares.The journal entry to record the transaction is a debit to Cash of $1,050 and a credit to Dividend Income of $1,050.

Question

Quizplus · Accepted Answer

The journal entry to record the receipt of cash dividends is a debit to Cash and a credit to Dividend Income for the amount received, which in this case is $1,050 ($3.5 x 300 shares).

Tool CoReceived Cash Dividends of $3