Use the following information to answer questions.
Wells Inc. reported these transactions relating to marketable Held for 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 Held for Trading Investments for $1,500.
B) debit to Dividend Revenue for $1,500.
C) credit to Dividend Revenue 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 Held for 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 Held for Trading Investments for $1,500. 
B) debit to Dividend Revenue for $1,500. 
C) credit to Dividend Revenue for $1,500. 
D) credit to Strategic Investments for $1,500.

Quizplus · Accepted Answer

When dividends are received, they are recorded as income, so the entry would include a credit to Dividend Revenue for the amount received, which is $1,500.

Use the Following Information to Answer Questions