1-. Passion Company created Sound Company with a transfer of $ 1,000 cash. During Sound Companys first year of operation, it generated a net loss of $ 180 and paid no dividend. During Sound Companys Second year of operation, it generated net income of $ 350 and paid dividend of $ 70. What journal entries would Passion Company make under Cost Method and Equity Method for both of the years?

2-. Petro Company acquires 18% of Santro Companys Common Stock for $ 250,000 at the beginning of the year but does not gain significant influence over Santro. During the year Santro has net income of $ 75,000 and pays dividend of $ 15,000. Record the necessary transactions in the book of Petro Company applying Cost Method.