Dividend Journal Entry Declared Paid Example
For example, the company ABC has stock investment in the company XYZ where it holds 30% shares of ownership. On December 31, the company XYZ reports a net income of $500,000 for the year, and at the same time, it also declares and pays the cash dividend of $60,000 to its stockholders. In this case, the company needs to make the journal entry for the dividend received by debiting the cash account and crediting the stock investments account instead. AccountingTools…