Accustart Ltd. acquired 38% of the common shares of Lecce Ltd. on January 1, 2024, by...

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Accustart Ltd. acquired 38% of the common shares of Lecce Ltd. on January 1, 2024, by paying $5.76 million for 144,000 shares. Lecce declared a cash dividend of $0.60 per share in each quarter that Accustart received on March 20, June 20, September 20, and December 20. Lecce reported net income of $1.44 million for the year. At December 31, the market price of the Lecce shares was $42 per share. (a) Your answer is partially correct. Prepare the journal entries for Accustart for 2024, assuming Accustart can exercise significant influence over Lecce and uses the equity method. (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. Record journal entries in the order presented in the problem.) Date an. 1 Account Titles and Explanation Investment in Associates Cash lar. 20 Cash une 20 > Investment in Associates Cash Investment in Associates ept. 20 Cash Investment in Associates ec. 20 Cash Investment in Associates ec. 31 Investment in Associates Income from Associates Debit 5760000 32832 32832 32832 32832 547200 Credit 5760000 32832 32832 32832 32832 547200 Accustart Ltd. acquired 38% of the common shares of Lecce Ltd. on January 1, 2024, by paying $5.76 million for 144,000 shares. Lecce declared a cash dividend of $0.60 per share in each quarter that Accustart received on March 20, June 20, September 20, and December 20. Lecce reported net income of $1.44 million for the year. At December 31, the market price of the Lecce shares was $42 per share. (a) Your answer is partially correct. Prepare the journal entries for Accustart for 2024, assuming Accustart can exercise significant influence over Lecce and uses the equity method. (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. Record journal entries in the order presented in the problem.) Date an. 1 Account Titles and Explanation Investment in Associates Cash lar. 20 Cash une 20 > Investment in Associates Cash Investment in Associates ept. 20 Cash Investment in Associates ec. 20 Cash Investment in Associates ec. 31 Investment in Associates Income from Associates Debit 5760000 32832 32832 32832 32832 547200 Credit 5760000 32832 32832 32832 32832 547200

Answer rating: 100% (QA)

Answer Date Account Titles and Explanation Debit Credit Jan 1 Investment in Associates 5760000 Cash ... View the full answer