Ask Question
14 August, 06:51

During the current year, Awning Company reported investment revenue of $4,000 from long-term investments reported using the equity method. The long-term investments account had a beginning balance of $10,000 and an ending balance of $11,000. What was the amount of cash revenue received from these investments?

+4
Answers (1)
  1. 14 August, 07:19
    0
    cash dividends: 3,000

    Explanation:

    We can solve for cash dividends based on how the equity method works:

    Beginning investing

    + proportional net income

    - cash dividends received

    Ending investing

    beginning + inomce - dividends = ending

    10,000 + 4,000 - cash dividends = 11,000

    cash dividends = 14,000 - 11,000

    cash dividends = 3,000

    when received, the journal entry for the dividends was as follow:

    cash 3,000 debit

    investing 3,000 credit

    to record cash received from investment
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “During the current year, Awning Company reported investment revenue of $4,000 from long-term investments reported using the equity method. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers