Hamasaki Company owns 30% of CDW Corp.stock.Hamasaki received $6,500 in cash dividends from its investment in CDW.The entry to record receipt of these dividends includes a debit to Cash for $6,500 and a credit to Equity Method Investments for $6,500.

Question

Quizplus · Accepted Answer

This is the correct entry to record the receipt of dividends for an equity method investment. The cash received is debited to Cash, and the dividends received from the investee are credited to the Equity Method Investments account.

Hamasaki Company Owns 30% of CDW Corp