As a long-term investment at the beginning of the 2018 fiscal year, Florists International purchased 25% of Nursery Supplies Inc.'s 16 million shares for $68 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $52 million and distributed cash dividends of $.75 per share. At the end of the year, the fair value of the shares is $64 million.

Required: Prepare the appropriate journal entries from the purchase through the end of the year.

Step 2: Record the investment revenue in Nursery Supplies shares

Step 3: Record the cash dividends received from Nursery Supplies shares

No Event General Journal Debit Credit Investment in Nursery Supplies shares 68 Cash 68 Cash Investment in Nursery Supplies shares 3 3 Investment in Nursery Supplies shares 13 Investment revenue 13 4 No journal entry required