Lawn Corporation purchased 297,500 of the 1.190,000 common shares of Abacus Ltd. on October 1, 2021, at $2.20 per share. Near the end of the fourth quarter ended on December 29th, Abacus declared dividends on its common shares of $83.000 but the dividend payment date is not until 2022. Abacus also announced that it had net income for the quarter ended December 31, 2021, of $197,000. Record the journal entries that Lawn would make during the last quarter ended December 31, 2021, under the following assumptions:
Lawn Corporation purchased 297,500 of the 1.190,000 common shares of Abacus Ltd. on October 1, 2021, at $2.20 per share. Near the end of the fourth quarter ended on December 29th, Abacus declared dividends on its common shares of $83.000 but the dividend payment date is not until 2022. Abacus also announced that it had net income for the quarter ended December 31, 2021, of $197,000. Record the journal entries that Lawn would make during the last quarter ended December 31, 2021, under the following assumptions:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:C
(b)
Lawn does not have significant influence over Abacus and uses the cost model to account for this investment. (List all debit entries
before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter 0 for the amounts)
Account Titles and Explanation
Date
Debit
Credit
Transcribed Image Text:Lawn Corporation purchased 297.500 of the 1,190,000 common shares of Abacus Ltd. on October 1, 2021, at $2.20 per share, Near
the end of the fourth quarter ended on December 29th, Abacus declared dividends on its common shares of $83,000 but the dividend
payment date is not until 2022. Abacus also announced that it had net income for the quarter ended December 31, 2021, of $197,000.
Record the journal entries that Lawn would make during the last quarter ended December 31, 2021, under the following assumptions:
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