Equity method for stock investment Chart of Accounts Journal Final Question Instructions At a total cost of $6,460,000. Herrera Corporation acquired 187 000 shares of Tran Corp.common stock as a long term investiert. Herrera Corporation uses the accounting for this investment. Tran Corp has 850,000 shares of common stock outstanding, ncluding the shores cuired by Herrera Corporation ty method of Required: A Journalize the entries by Herrera Corporation on December 31 to record the following information (refer to the Chart of Accounts for exact wording of account best 1. Tan Corp reports net income of5722,000 for the current period 2. A cash dividend of $0.33 per common share is paid by Tres Corp. during the current period B. Why is the equity method appropriate for the Than Core investment? CHART OF ACCOUNTS Herrera Corporation General Ledger REVENUE 410 Sales ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 121 Allowance for Dout Accounts 131 Notes Receivable 132 Interest Receivable 141 Merchandise inventory 145 Office Supplies 165 Store Suplies 151 Prepaid insurance 161 nvestment in Tron Corp Stock 611 Interest Revenue 612 Dividend Revenue 621 Income of Tron Corp. 631 Gain on Sale of investments 641 Uhrzed Gain on Trading Investments EXPENSES 511 Cost of Merchandise Sold 512 Bad Debt Expense 515 C C Experise Check My Work 2 more Check My Worker (Previous Next All Wood Emes Instructor Save and Ent Submit Assignment for Grading Chat of Account Journal Final Question A. Journalize the entries by Herrera Corporation on December 31 to record the following information Refer to the Chart of Accounts for exact wording of accounties PADE 10 JOURNAL ACCOUNTING EQUATION L ITY Final Question Why is the equity method appropriate for the Thun Corp. Investment? Herrera v ertin Tran Corp. represents common stock of the investee is presuned to represent s investee of the outstanding shares of Tran Corp. An investment wound between and of the outstanding ticant influence the equity method is when the investor can exercise indicant influence over the