a) Forde Inc. owned a 80% interest in Scott Inc on January 1, 2012, when Scott Inc had the following stockholders' equity: On July 1,2012 , Scott Inc sold 10,000 additional shares to minority shareholders in a public offering for $50 per share. Scott Inc net income for 2012 was $160,000, and the income was earned evenly during the year. Forde Inc. uses the simple equity method to record the investment in Scott Inc. Summary entries are made each December 31 to record the year's activity. Required: Prepare Forde Inc. equity adjustments for 2012 that result from changes in the investment in Scottinc. account. Assume Forde Inc. has $1,000,000 of paid-in capital in excess of par.[13 b) Marshfield Hospital is a private, not-for-profit hospital. The following transactions occurred: 1. Unrestricted cash gifts that were received last year, but designated for use in the current year, totaled $180,000. The cash gifts were used in the current year in accordance with restrictions. ii. Unrestricted pledges of $800,000 were received. Ten percent of the pledges typically prove uncollectible. Additional cash contributions during the year totaled $300,000. iii. Gifts in kind were received that were sold at a silent auction for $23,000. The fair value of the donated gifts in kind could not be reasonably determined. iv. Expenses were incurred and paid as follows: Salary of doctor, $190,000; facility rental, $36,000; purchases of supplies, $8,000; and utility costs, $10,000. v. Marketable securities with a fair value of $650,000 were received as a donation with a stipulation that the hospital use the funds to purchase suitable land for the hospital. Required: Prepare journal entries for the aforementioned transactions. [12 marks]