Micron owns 30% of JVT shares. Micron received $6,500 in cash dividends from its investment in JVT. The entry to record receipt of these dividends includes a debit to Cash for $6,500 and a credit to Long-Term Investments for $6,500.

Question

Quizplus · Accepted Answer

The entry to record receipt of dividends from a long-term investment includes a debit to Cash and a credit to Dividend Income, not Long-Term Investments.

Micron Owns 30% of JVT Shares