Segmental Manufacturing owns 35% of Glesson Corp. stock. Glesson pays a total of $47,000 in cash dividends for the period. Segmental's entry to record the dividend transaction would include a:

Question

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Segmental Manufacturing owns 35% of Glesson Corp., so it would receive 35% of the dividends paid. Therefore, Segmental would record a credit to Long-Term Investments for $16,450 (35% of $47,000) to reduce the investment account by the amount of dividends received.

Segmental Manufacturing Owns 35% of Glesson Corp