E 13-14 (207 1. Accounting for Investments Using the Equity Method Assume that during 2018, Hong Kong Disneyland Company purchased 40,000 shares of Toy Kingdom Co. stock for $60 per share. Toy Kingdom Co. had a total 160,000 shares of stock outstanding. Prepare journal entries for the following transactions: Jan. 3 Purchased 40,000 shares of common stock at $60. July Toy Kingdom declared and paid a $5.5-per-share dividend. Dec. 31 Toy Kingdom reported net income of $7,500,000. 2. On January 2, 2019, Disneyland Company decided to sell a half of its shares of Toy Kingdom Co. stock for $62 per share. Prepare the journal entry to record the sale