Barry Corporation holds equity securities earning $250 through dividend declarations and debt securities earning $300 from interest earned and that it has not yet received these amounts in cash.The entry is as follows:

Question

Quizplus · Accepted Answer

Option C correctly reflects the earning of $250 through dividend declarations and $300 from interest earned. It also correctly shows that these amounts have not yet been received in cash and are therefore recorded as "Dividends and Interest Receivable." The revenue accounts "Dividend Revenue" and "Interest Revenue" are also appropriately credited. Option A incorrectly combines the receivables and revenue accounts, while B and D incorrectly use "Dividends and Interest Payable" accounts. Option E incorrectly shows both receivable and payable accounts, which is not appropriate for this scenario.

Barry Corporation Holds Equity Securities Earning $250 Through Dividend Declarations