Cullumber Company acquired 28% of the outstanding common stock of Grinwold Inc. on January 1, 2020, by paying $1,555,400 for 55,550 shares. Grinwold declared and paid a $0.50 per share cash dividend on June 30 and again on December 31, 2020. Grinwold reported net income of $859,200 for the year. (a) Your Answer Correct Answer Your answer is partially correct. Prepare the journal entries for Cullumber Company for 2020, assuming Cullumber cannot exercise significant influence over Grinwold. (Use the cost method.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Jan. 1 Stock Investments Cash June 30 Cash Stock Investments Dec. 31 Stock Investments Revenue from Stock Investments eTextbook and Media Solution List of Accounts Debit 1555400 27775 27775 Credit 15554 277 277 (b) Your answer is correct. Prepare the journal entries for Cullumber Company for 2020, assuming Cullumber can exercise significant influence over Grinwold. (Use the equity method.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Jan. 1 Stock Investments Cash June 30 cash Stock Investments Dec. 31 Cash Stock Investments (To record dividends) Dec. 31 Stock Investments Revenue from Stock Investments (To record 28% equity) eTextbook and Media List of Accounts Debit 1555400 27775 27775 240576 Credit 1555400 27775 27775 240576 Attempts: 1 of 5 used (c2) Shows in tabular form the account balances under each method at December 31, 2020. (Do not leave any answer field blank. Enter for amounts.) Stock Investments Dividend Revenue Revenue From Stock Investments eTextbook and Media List of Accounts Save for Later Cost Method Equity Method $ Attempts: 0 of 5 used Submit