Entries for equity investments: 20%50% ownership

On January 4, 20Y4, Ferguson Company purchased 50,000 shares of Silva Company's common stock directly from one of the founders for a price of $54 per share. Silva has 200,000 shares outstanding, including the Daniels shares. On July 2, 20Y4, Silva paid $145,000 in total dividends to its shareholders. On December 31, 20Y4, Silva reported a net income of $459,000 for the year.

Question Content Area

a. Journalize the Ferguson Company entries for the transactions involving its investment in Silva Company during 20Y4. If an amount box does not require an entry, leave it blank.

20Y4, Jan. 4	CashDividend RevenueIncome of Silva CompanyInvestment in Silva Company StockNotes Receivable	- Select -	- Select -
	CashDividend RevenueIncome of Silva CompanyInvestment in Silva Company StockNotes Receivable	- Select -	- Select -
20Y4, July 2	CashDividend RevenueIncome of Silva CompanyInvestment in Silva Company StockNotes Receivable	- Select -	- Select -
	CashDividend RevenueIncome of Silva CompanyInvestment in Silva Company StockNotes Receivable	- Select -	- Select -
20Y4, Dec. 31	CashDividend RevenueIncome of Silva CompanyInvestment in Silva Company StockNotes Receivable	- Select -	- Select -
	CashDividend RevenueIncome of Silva CompanyInvestment in Silva Company StockNotes Receivable	- Select -	- Select -

Question Content Area

b. Determine the December 31, 20Y4, balance of Investment in Silva Company Stock. $fill in the blank f87248024ff4036_1