Entries for equity investments: 20%50% ownership

On January 4, 20Y4, Ferguson Company purchased 480,000 shares of Silva Companys common stock directly from one of the founders for a price of $30 per share. Silva has 1,200,000 shares outstanding, including the Daniels shares. On July 2, 20Y4, Silva paid $750,000 in total dividends to its shareholders. On December 31, 20Y4, Silva reported a net income of $2,000,000 for the year.

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		fill in the blank 463123fff04c073_2	fill in the blank 463123fff04c073_3
		fill in the blank 463123fff04c073_5	fill in the blank 463123fff04c073_6
20Y4, July 2		fill in the blank 463123fff04c073_8	fill in the blank 463123fff04c073_9
		fill in the blank 463123fff04c073_11	fill in the blank 463123fff04c073_12
20Y4, Dec. 31		fill in the blank 463123fff04c073_14	fill in the blank 463123fff04c073_15
		fill in the blank 463123fff04c073_17	fill in the blank 463123fff04c073_18

b. Determine the December 31, 20Y4, balance of the investment in Silva Company stock account. $fill in the blank af88fc029fcdfc6_1