APA$-4($Algo$)$ Recording Passive Investments and Investments for Significant Influence LO A$-2,$ A$-3$

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On March $31,20$X$1,$ Robert Electronics Company purchased $4,200$ shares of Pat Company for $$260,000.$ The following information applies to the stock of Pat Company:

Price

$12/31/20$X$1$ $$65$

$12/31/20$X$263$

$12/31/20$X$364$

Pat Company declares cash dividends of $$2$ per share on November $1$ of each year and pays dividends on December $1$ of each year.

APA$-4$ Part $1$

Required:

$1.$ Prepare journal entries to record the facts in the case, assuming that Robert purchased the shares as a passive investment.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.