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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: (a) Lawn has significant influence over Abacus and uses the equity method 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 O for the amounts) Date Account Titles and Explanation lyı Debit Credit

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: (a) Lawn has significant influence over Abacus and uses the equity method 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 O for the amounts) Date Account Titles and Explanation lyı Debit Credit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: (a) Lawn has significant influence over Abacus and uses the equity method 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 O for the amounts) Date 5 Account Titles and Explanation 40 4+ O ly ho Debit o P A - + Credit ins prt sc delete
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: (a) Lawn has significant influence over Abacus and uses the equity method 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 O for the amounts) Date 5 Account Titles and Explanation 40 4+ O ly ho Debit o P A - + Credit ins prt sc delete
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