Harrison Company owns 20,000 of the 50,000 outstanding shares of Tammy, Inc. nmon sto Harrison uses the equity method to account for the equity investment. Harrison's beginning balance in the equity investment account was $750,000 for year20. During 2020, Tammy earns $1,200,000 and pays cash dividends of $960,000. Harrison's journal entry to record the cash dividends from Tam hould inclu O CR Dividends Revenue $960,000 O DR Cash $960,000 CR Equity Investment $384,000 O CR Dividends Revenue $384,000 O CR Investment Income $384,000

Harrison Company owns 20,000 of the 50,000 outstanding shares of Tammy, Inc. nmon sto Harrison uses the equity method to account for the equity investment. Harrison's beginning balance in the equity investment account was $750,000 for year20. During 2020, Tammy earns $1,200,000 and pays cash dividends of $960,000. Harrison's journal entry to record the cash dividends from Tam hould inclu O CR Dividends Revenue $960,000 O DR Cash $960,000 CR Equity Investment $384,000 O CR Dividends Revenue $384,000 O CR Investment Income $384,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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