Equity method entries. Vogel Company is a subsidiary of Joyce Company. Joyce Company accounts for its investment in Vogel Company using the equity method on its single-company books. Present journal entries for the following selected transactions. Record the set of entries on the books of Vogel Company separately from the set of entries on the books of Joyce Company.

( 1 ) On January 2. Joyce Company acquired on the market, for cash. 100 percent of the common stock of Vogel Company. The outlay was $420,000. The total contributed capital of Vogel Company 's stock outstanding was S300.000: the retained earnings balance was S80.000. Joyce attributes the excess of cost over book value acquired to an internally developed patent that has a ten-year remaining useful life on January 2.

(2) Vogel Company purchased materials for S29.000 from Joyce Company on account at the latter's cost. (3) Vogel Company obtained an advance of $6,000 from Joyce Company. Vogel Company deposited the funds in the bank.

(4) Vogel Company paid $16,000 on the purchases in (2)

(5) Vogel Company repaid S4.000 of the loan received from Joyce Company in (3).

161 Vogel Company declared and paid a dividend of $20,000 during the year.