Use the following information to answer questions
Wells Inc.reported these transactions relating to marketable Trading Investments intended to generate net income and to be sold in the near term:

-The entry to record the receipt of the dividends on Jun 1 would include a
A)debit to Trading Investments for $1,500.
B)debit to Dividend Income for $1,500.
C)credit to Dividend Income for $1,500.
D)credit to Strategic Investments for $1,500.

Question

Use the following information to answer questions 
Wells Inc.reported these transactions relating to marketable Trading Investments intended to generate net income and to be sold in the near term:
 
-The entry to record the receipt of the dividends on Jun 1 would include a
A)debit to Trading Investments for $1,500. 
B)debit to Dividend Income for $1,500. 
C)credit to Dividend Income for $1,500. 
D)credit to Strategic Investments for $1,500.

Quizplus · Accepted Answer

When dividends are received, the Dividend Income account is credited to recognize the income earned.

Use the Following Information to Answer Questions