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Fredo, Inc., purchased 10% of Sonny Enterprises for $1,000,000 on January 1, 2021. Sonry recognized a total of $390,000 net income during 2021. paid $29.000

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Fredo, Inc., purchased 10% of Sonny Enterprises for $1,000,000 on January 1, 2021. Sonry recognized a total of $390,000 net income during 2021. paid $29.000 of dividends to Fredo during 2021, and at December 31, 2021, the market value of the Sonny investment increased to $1.039,000. Required: Prepare the journal entries necessary to account for the Sonny investment, assuming that Fredo (1) does not have significant influence or (2) does have significant influence over the operating and financial policies of the investee. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries necessary to account for the Sonny investment, assuming that Fredo lacks significant influence. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries necessary to account for the Sonny investment, assuming that Fredo lacks significant influence. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 Record the entry for investment in Sonny Enterprises. Note: Enter debits before credits Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal plete this question by entering your answers in the tabs below. Required 1 Red Wired 2 Prepare the journal entries necessary to account for the Sonny investment, assuming that Fredo has significant influence over the operating and financial policies of the investee. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet

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