Assessing Financial Statement Effects of Equity Method Securities The following transactions involve investments in marketable securities and are accounted for using the equity method. (1) Purchased 12,000 common shares of Barth Co. at $9 cash per share; the shares represent 30% ownership in Barth. (2) Received a cash dividend of $1.25 per common share from Barth. (3) Recorded income from Barth stock investment when Barth's net income is $80,000. (4) Sald all 12,000 common shares of Barth for $120,500. Required a. Prepare journal entries to record these four transactions. General Journal Description Debit Credit (1) 0 0 0 0 (2) 0 0 (3) + 0 0 0 0 0 0 0 0 0 (4) 0 0 0 Investment in Barth Co. 0 Investment Income (R) 0 (1) b. Post the journal entries from a to their respective T-accounts. Cash (A) Investment in Barth Co. (A) (1) 0 (2) 0 0 (2) 0 (3) 0 13) 0 0 (4) 0 0 0 Gain on Sale of investment. (R) 0 0 0 0 0 0 (2) (3) (2) (3) 0 0 0 0 0 (4) 0 0 (4) 0