Denzel Jones is the major stockholder of Crystal Cleaning Company, a small corporation. Recently, Denzel received $18,000 of dividends from Crystal Cleaning. After receiving the dividends, he contributed $14,000, in his name, to Habitat for Humanity. The contribution of the $14,000 should be recorded on the accounting records of which of the following entities?

Question

Quizplus · Accepted Answer

The contribution of $14,000 is a personal transaction of Denzel Jones and should be recorded only on his personal records and on the records of Habitat for Humanity as a contribution received. It should not be recorded on the accounting records of Crystal Cleaning as it has no relation to the business activities of the company.

Denzel Jones Is the Major Stockholder of Crystal Cleaning Company