Tool Co.received dividends of $35 per share on 300 Sharp Systems Inc shares.The journal entry to record the transaction is a debit to Cash of $10,500 and a credit to Dividend Revenue of $10,500.

Question

Quizplus · Accepted Answer

This is the correct journal entry to record the receipt of dividends. The debit to Cash reflects the increase in the company's cash balance due to the receipt of the dividends, while the credit to Dividend Revenue reflects the earnings from the dividends received.

Tool CoReceived Dividends of $35 Per Share on 300 Sharp Systems