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On February 12, Addison, Inc

question 134

Essay

On February 12, Addison, Inc. purchased 6,000 shares of Lucas Company at $22 per share plus a $240 brokerage fee. This purchase represents less than 20% ownership of the Lucas Company. On August 22, Lucas paid a $0.42 dividend per share. On November 10, 4,000 shares of Lucas stock were sold for $28 per share less a $160 brokerage fee.

Prepare the journal entries for the original purchase, dividend, and sale.


Definitions:

Scatter Diagram

A graphical representation used to visualize the relationship between two quantitative variables, showing how one variable affects the other.

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