Chung owns 40% of Lu's common stock. Lu pays $97,000 in total cash dividends to its shareholders. Chung's entry to record this transaction should include a:
A) Debit to Dividends for $97,000.
B) Debit to Dividends for $38,800.
C) Debit to Long-Term investments for $97,000.
D) Credit to Long-Term Investments for $38,800.
E) Credit to Cash for $97,000.

Question

Quizplus · Accepted Answer

The Answer of Chung owns 40% of Lu's common stock. Lu pays $97,000 in total cash dividends to its shareholders. Chung's entry to record this transaction should include a:
A) Debit to Dividends for $97,000.
B) Debit to Dividends for $38,800.
C) Debit to Long-Term investments for $97,000.
D) Credit to Long-Term Investments for $38,800.
E) Credit to Cash for $97,000.

Chung Owns 40% of Lu's Common Stock