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.

Dividend: It can be defined as the distribution of the residual earnings of the company to its…

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.

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.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter2: T Accounts, Debits And Credits, Trial Balance, And Financial Statements

Section: Chapter Questions

Problem 8QY: What is the amount of ending capital shown on the balance sheet for Floress Catering? a. 22,000 b....

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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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