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chenshi zhang
on Nov 13, 2024

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Blanton Corporation purchased 15% of the outstanding shares of common stock of Worton Corporation as a long-term investment. Subsequently, Worton Corporation reported net income and declared and paid cash dividends. What journal entry would Blanton Corporation use to record the dividends it receives?

A) debit Investments-Worton Corporation; credit Cash
B) debit Cash; credit Dividend Revenue
C) debit Investments-Worton Corporation; credit Income of Worton Corporation
D) debit Cash; credit Investments-Worton Corporation

Dividend Revenue

Income received by investors from owning shares in a company, typically paid out from the company's profits.

Cash Dividends

Payments made by a corporation to its shareholders from its profit.

  • Ascertain the appropriate accounting practices for handling dividends and interest from investments.
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Navjot DhaliwalNov 18, 2024
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