The journal entry to record the receipt of a cash dividend arising from an available-for-sale investment held by a company includes:

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When a company receives a cash dividend arising from an available-for-sale investment, the journal entry to record this includes a debit to Cash, since the company is receiving cash, and a credit to Dividend Revenue, since the company is increasing its revenue as a result of the dividend received. There is no need to debit Unrealized Gain on Investment because this account only gets adjusted when the investment is sold, and there is no need to credit it either as it is not affected by the receipt of a dividend. Finally, a memorandum entry is not sufficient to record this transaction, as it does not provide a formal record within the company's accounting records.

The Journal Entry to Record the Receipt of a Cash