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Please provide and explain the the journal entry required to record dividends received under the equity...

Please provide and explain the the journal entry required to record dividends received under the equity method by the Investor company and the journal entry required for the payment of dividends by the Investee company ?

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Expert Solution

Ams: Investor Company:

           Cash A/c    Dr                   xxx

                To Investments in Associates                                         xxx

(being dividend income reduced the value of investment)

Investee Comapany

                 Dividend Payable   Dr                   xxx

                         To cash                                                xxx

(being dividend declared is paid)

ekkarill92 answered 1 year ago
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