14. Farrell Cookie Corporation purchased 40% of the 326,000 outstanding shares of SP's Fine Foods, Inc. on January 1 of the current year. Farrell Cookie acquired the shares at a price of $3.80 per share. SP's Fine Foods, Inc. reported net income of $70,000 and declared and paid cash dividends of $25,800 during the current year. At the time of acquisition, the book value of SP's Fine Foods' net assets equaled its market value. Requirement Prepare all journal entries necessary to account for this investment in SP's on Farrell Cookie's books under the equity method. Prepare all journal entries necessary to account for this investment in SP's on Farrell Cookie's books under the equity method. (Record debits first, then credits. Exclude explanations from any journal entries. If no entry is required select "No Entry Required" on the first line of the journal entry table and leave all remaining cells in the table blank.) First, record Farrell Cookie Corporation's acquisition of a 40% share of SP's Fine Foods, Inc on January 1 of the current year. Account January 1, Current Year (1) Investment in SP's Fine Foods (2) Cash |(3) (4) Now, record any entry required for Farrell Cookie Corporation as a result of SP's declaring and paying cash dividends of $25,800 during the current year Account December 31, Current Year (5) (6) (7) (8) Finally, record any entry required for Farrell Cookie Corporation as a result of SP's reporting net income of $70,000. Account December 31, Current Year (9) (10) (11) (12)