This Question: 1 pt 13 of 21 (0 complete) This Quiz: 25 pts possible An investor

Question

This Question: 1 pt 13 of 21 (0 complete) This Quiz: 25 pts possible An investor owns 33% o the outstanding common stock of Leshan ompany Leshan Company reports net income of S60,000 for the current year which journal entry should the investor prepare? O A. debit Cash for $19,800 and credit Equity-Method Investment for $19,800. O B. debit Equity-Method Investment Revenue for $19,800 and credit Equity-Method Investment for $19,800. O C. debit Cash for $19,800 and credit Equity-Method Investment Revenue for $19,800 D. debit Equity-Method Investment for $19,800 and credit Equity-Method Investment Revenue for $19,800.

Explanation / Answer

Answer D is correct:    

Debit Equity Method Investment for $ 19,800 and credit Equity Method Investment revenue for $ 19800

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