On January 1, 2019, Ball Corporation purchased, as a stock investment, 10,000 shares of Leftwich Company common stock for $15 cash per share. On December 31, 2019, Leftwich announced net income of $80,000 for the year and paid a cash dividend of $1.10 per share. At December 3 1, 2019, the market value of Leftwich's stock was $19 per share.

a. Assume that the stock acquired by Ball represents 15% of Leftwich's voting stock-a passive equity investment. For the following transactions, (1) prepare journal entries, (2) post those journal entries to their respective T-accounts, and (3) record each of the transactions in the financial statement effects template.

(1) Ball purchased 10,000 common shares of Leftwich at $15 cash per share; the shares represent a 15% ownership in Leftwich.

(2) Leftwich reported annual net income of $80,000.

(3) Received a cash dividend of $1.10 per common share from Leftwich.

(4) Year-end market price of Leftwich common stock is $19 per share.

b. Assume that Ball's $150,000 investment purchased 30% of Leftwich's voting stock and that Ball accounts for this investment using the equity method since it is able to exert significant influence. For the same four transactions as above

(1) Prepare journal entries,

(2) Post those journal entries to their respective T-accounts

(3) Record each of the transactions in the financial statement effects template.