Turner Company owns 10% of the outstanding stock of ICA Company. During the current year, ICA paid a $5.10 million cash dividend on its common shares. What effect did this dividend have on Turner's 2021 financial statements? (Enter your answers in whole dollars, not in millions. Amounts to be deducted should be indicated with a minus sign.)

Balance Sheet

Cash $510,000

$

Income Statement

Dividend Revenue $510,000

I do not know what the second Balance Sheet account should be and the amount.

Turner Company

The effect that this dividend had on Turner's 2021 financial statements are:

Balance Sheet

Cash $510,000

Retained Earnings $510,000

Income Statement

Dividend Revenue $510,000

Explanation:

a) Data and Calculations:

Shareholding in ICA Company = 10%

ICA paid cash dividend amounting to $5.10 million

Turner's share of the dividend = $510,000 ($5,100,000 * 10%)

b) The receipt of the cash dividend by Turner will increase its Cash balance by $510,000.  It will also increase the Dividend Revenue by $510,000, thereby increasing the profit for the year.  If Turner does not pay dividends, it will also increase the Retained Earnings by the same amount.