If the equity method is used to account for a long-term investment in common stock cash dividends received from the investee are recorded by the investor as a debit to cash and a credit to Equity-method Investment a debit to Equity-method Investment and a credit to Equity-method investment Revenue a debit to cash and a credit to Dividend Revenue a debit to Dividend Receivable and a credit to Dividend Revenue Question 7 Under the equity method, fan Equity method investments soldata in the gainis reported on the balance sheet as an adjustment to accumulated other comprehensive income reported as operating revenue on the income statement. reported as other comprehensive income on the statement of comprehensive income reported in the other revenue and gain section of the income statement