Mozart Co. owns 35% of Melody Inc. Melody pays $50,000 in cash dividends to its shareholders for the period. Mozart’s entry to record the Melody dividend includes a a. Credit to Investment Revenue for $50,000. b. Credit to Equity Method Investments for $17,500. c. Credit to Cash for $17,500. d. Debit to Equity Method Investments for $17,500. e. Debit to Cash for $50,000.
Mozart Co. owns 35% of Melody Inc. Melody pays $50,000 in cash dividends to its shareholders for the period. Mozart’s entry to record the Melody dividend includes a a. Credit to Investment Revenue for $50,000. b. Credit to Equity Method Investments for $17,500. c. Credit to Cash for $17,500. d. Debit to Equity Method Investments for $17,500. e. Debit to Cash for $50,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Mozart Co. owns 35% of Melody Inc. Melody pays $50,000
in cash dividends to its shareholders for the period. Mozart’s
entry to record the Melody dividend includes a
a. Credit to Investment Revenue for $50,000.
b. Credit to Equity Method Investments for $17,500.
c. Credit to Cash for $17,500.
d. Debit to Equity Method Investments for $17,500.
e. Debit to Cash for $50,000.
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