Question
Visage Cosmetics, a public company, acquires 40% of Larkspur Inc's 28,700 common shares for $19 per share on January 2, 2024. On June 15,
Visage Cosmetics, a public company, acquires 40% of Larkspur Inc's 28,700 common shares for $19 per share on January 2, 2024. On June 15, Larkspur pays a cash dividend of $28,700. On December 31, Larkspur reports profit of $381,900 for the year. At December 31, Larkspur shares are trading at $22 per share. (a) Prepare the required journal entries to record the Larkspur Inc. investment assuming significant influence exists. (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. List all debit entries before credit entries)
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