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Lovington Corporation purchased 188,000 of the 840,0

Lovington Corporation purchased 188,000 of the 840,0

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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Hh.29.

 

Covington Corporation purchased 168,000 of the 840,000 common shares of Abacus Ltd. on October 1, 2021, at $2.90 per share. Near the end of the fourth quarter ended on December 29th, Abacus declared dividends on its common shares of $76,000 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 $200,000. Record the journal entries that Covington would make during the last quarter ended December 31, 2021, under the following assumptions: Show Transcribed Text Date Account Titles and Explanation Oct. 1 Dec. 29 Dec. 31 Cash Dividends Receivable No Entry No Entry Debit 487200 15200 0 Credit 487200 www 15200
Transcribed Image Text:Covington Corporation purchased 168,000 of the 840,000 common shares of Abacus Ltd. on October 1, 2021, at $2.90 per share. Near the end of the fourth quarter ended on December 29th, Abacus declared dividends on its common shares of $76,000 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 $200,000. Record the journal entries that Covington would make during the last quarter ended December 31, 2021, under the following assumptions: Show Transcribed Text Date Account Titles and Explanation Oct. 1 Dec. 29 Dec. 31 Cash Dividends Receivable No Entry No Entry Debit 487200 15200 0 Credit 487200 www 15200
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