Asked Jan 11, 2020

If a company owns 25% of the voting stock of Pink Co. and can exercise significant influence, dividends received will be

  • credited to Equity Investments—Pink Co.
  • credited to Dividend Revenue.
  • debited to Equity Investments—Pink Co.
  • credited to Cash.

Expert Answer

Step 1

Significant influence equity investments:

Significant influence equity investments are the investments in the equity securities, where the investor holds ...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in




Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A

Q: Determining the cost of assets Lawson Furniture purchased land, paying $65,000 cash and signing a $2...

A: a)


Q: Moon Hardware is planning to factor some of its receivables.The cash received will be used to pay fo...

A: Definition:


Q: Computing the collection period for receivables Unique Media Sign Incorporated sells on the account....

A: Days’ sales in receivables: Days’ sales in receivables tells the number of days a company takes to c...


Q: Describe the effect of a “bargain-purchase option” onaccounting for a capital lease transaction by a...

A: Click to see the answer


Q: What is equity security?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from ...


Q: Because of calamitous earthquake losses, BernsteinCompany, one of your client’s oldest and largest c...

A: Bad debt expense: Bad debt expense is an expense account. The amounts of loss incurred from extendin...


Q: Overhead variances, service setting. Carlyle Capital Company offers financial services to its client...

A: Calculate the variable overhead spending and efficiency variances and indicate whether each is favor...


Q: What are adjusting entries and why are they necessary?

A: Adjusting entries: Adjusting entries are journal entries which are recorded at the end of the accoun...


Q: In 150 words or fewer, explain the difference between trading debt investments and available-for-sal...