What is the journal entry to record dividends from an investment under the equity method?
For an investment that is reported under the equity method, then any dividends received from the investment would represent a decrease in the investment’s asset balance on the balance sheet. On the plus side, the company will receive and inflow of cash from the dividends received.
For example, if the company received a $15,000 dividend, the company would debit cash and credit the investment asset.
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