33-On January 1,2019, Gulf constructors acquired 15% percent of the voting shares of Dhofar Traders for OMR 75,000. The investment is classified as available for sale. The shares do not trade in an active market. During the year ending December 31, 2019, Dhofar Traders did not earn any net income but paid dividend OMR 60,000. What is the journal entry in the books of Gulf constructors for dividend received, under cost method – return on investment? a. Cash Account Debit OMR 9,000 Investment Account Credit OMR 9,000 b. Cash Account Debit OMR 11,250 Dividend Income Credit Account OMR 11,250 c. Cash Account Debit OMR 11,250 Investment Account Credit OMR 11,250 d. Cash Account Debit OMR 60,000 Dividend Income Credit Account OMR 60,000
33-On January 1,2019, Gulf constructors acquired 15% percent of the voting shares of Dhofar Traders for OMR 75,000. The investment is classified as available for sale. The shares do not trade in an active market. During the year ending December 31, 2019, Dhofar Traders did not earn any net income but paid dividend OMR 60,000. What is the journal entry in the books of Gulf constructors for dividend received, under cost method – return on investment? a. Cash Account Debit OMR 9,000 Investment Account Credit OMR 9,000 b. Cash Account Debit OMR 11,250 Dividend Income Credit Account OMR 11,250 c. Cash Account Debit OMR 11,250 Investment Account Credit OMR 11,250 d. Cash Account Debit OMR 60,000 Dividend Income Credit Account OMR 60,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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33-On January 1,2019, Gulf constructors acquired 15% percent of the voting shares of Dhofar Traders for OMR 75,000. The investment is classified as available for sale. The shares do not trade in an active market. During the year ending December 31, 2019, Dhofar Traders did not earn any net income but paid dividend OMR 60,000. What is the journal entry in the books of Gulf constructors for dividend received, under cost method – return on investment ?
a.
Cash Account Debit OMR 9,000 Investment Account Credit OMR 9,000
b.
Cash Account Debit OMR 11,250 Dividend Income Credit Account OMR 11,250
c.
Cash Account Debit OMR 11,250 Investment Account Credit OMR 11,250
d.
Cash Account Debit OMR 60,000 Dividend Income Credit Account OMR 60,000
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