Question

When a company receives a cash dividend from a trading? security, the journal entry? includes:

a. a debit to cash and credit to dividend revenue.
b. a debit to investment in trading securities and credit to cash.
c. a debit to cash and credit to investment in trading securities.
d. a debit to dividend revenue and credit to cash?

Answer 1

A. A debit to cash and credit to dividend revenue.