Toy Co Corporation purchased 282,000 of the 940,000 common shares of Abacus Ltd. on October 1, 2021, at $2.10 per share. Near the end of the fourth quarter ended on December 29th, Abacus declared dividends on its common shares of $74,000 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 $188,000. Record the journal entries that Toy Co would make during the last quarter ended December 31, 2021, under the following assumptions:
Toy Co Corporation purchased 282,000 of the 940,000 common shares of Abacus Ltd. on October 1, 2021, at $2.10 per share. Near the end of the fourth quarter ended on December 29th, Abacus declared dividends on its common shares of $74,000 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 $188,000. Record the journal entries that Toy Co 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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Question
H1.
Transcribed Image Text:Toy Co Corporation purchased 282,000 of the 940,000 common shares of Abacus Ltd. on October 1, 2021, at $2.10 per share. Near
the end of the fourth quarter ended on December 29th, Abacus declared dividends on its common shares of $74,000 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 $188,000.
Record the journal entries that Toy Co would make during the last quarter ended December 31, 2021, under the following
assumptions:
(a)
Toy Co 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
Your answer is partially correct.
ct. 1 ✓
ec. 29 v
ec. 31
Account Titles and Explanation
Investment in Associates
Cash
Dividends Receivable
Date
Investment in Associates
Investment in Associates
Income from Associates
eTextbook and Media
List of Accounts
Question 4 of 5
<
>
required, select "No Entry" for the account titles and enter O for the amounts.)
Account Titles and Explanation
Debit
$5,92,200
$22,200
56,400
Debit
Credit
5,92,200
$22,200
1.73/4
56,400
Attempts: 3 of 3 used
Credit
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