Brief Exercise 144 On January 1, Sanchez Corporation purchased a 35% equity interest in Lawton Company for $380,000. At December 31, Lawton de dare dividend and reported net income of $98,000. and pai a $40,000 cash Prepare the necessary journal entries for Sanchez Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit an. 1 Cash 380,000 14000 14000 (To record dividends paid) Dc. 31 (To record reported net income)