Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 90,000 shares of Silva Company directly from one of the founders for a price of $61 per share. Silva has 250,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $243,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $841,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva. a. Provide the Ferguson Company journal entries for the transactions involving its investment in Silva Company during Year 1. Year 1, Jan. 4 Year 1, July 2 Year 1, Dec. 31 - b. Determine the December 31, Year 1, balance of Investment in Silva Company Stock The investments of Charger Inc. include a single investment: 11,010 shares of Raiders Inc. common stock purchased on February 24, Year 1, for $39 per share including brokerage commission. These shares were classified as trading securities. As of the December 31, Year 1, balance sheet date, the share price had increased to $42 per share. Required: A. Journalize the entries to acquire the investment on February 24, and record the adjustment to fair value on December 31, Year 1. Refer to the Chart of Accounts for exact wording of account titles. B. How is the unrealized gain or loss for trading investments reported on the financial statements ? Instructions The following equity investment transactions were completed by Romero Company during a recent year: Apr. 10 Purchased 4,400 shares of Dixon Company for a price of $50 per share plus a brokerage commission of $115. Received a quarterly dividend of $0.65 per share on the Dixon Company investment Sold 1,200 shares for a price of $41 per share less a brokerage commission of $90. July Sept. 8 10 Journalize the entries for these transactions. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar