LTI Corp.purchased 1000 shares as a short-term investment (no significant influence_for $25,000 on January 4,2017.The market value of these shares at December 31,2017 was $23,400.On December 31,2017,the company received a cash dividend of $0.55 per share.
-The entry to record the dividend should include a:

Question

Quizplus · Accepted Answer

The entry to record the cash dividend should be a debit to Cash for $550 and a credit to Dividend Revenue for $550. This is because the company received a cash dividend of $0.55 per share, and they owned 1000 shares, resulting in a total dividend of $550. None of the other options are correct as they do not reflect the correct amount or account to be credited.

LTI CorpPurchased 1000 Shares as a Short-Term Investment (No Significant Influence_for