list of accounts

On January 1, 2017, Fisher Corporation purchased 40 percent (90,000 shares) of the common stock of Bowden, Inc. for $980,000 in cash and began to use the equity method for the investment. The price paid represented a $48,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered appropriately valued on Bowden's books. Bowden declares and pays a $90,000 cash dividend to its stockholders each year on September 15. Bowden reported net income of $400,000 in 2017 and $348,000 in 2018. Each income figure was earned evenly throughout its respective year. On July 1, 2018, Fisher sold 10 percent (22,500 shares) of Bowden's outstanding shares for $338,000 in cash. Although it sold this interest, Fisher maintained the ability to significantly influence Bowden's decision-making process. Prepare the journal entries for Fisher for the years of 2017 and 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) No General Journal Credit Date 01/01/2017 Debit 980,000 Investment in Bowden Cash 980,000 09/15/2017 X 36,000 Investment in Fisher Investment in Bowden 36,000 12/31/2017 160,000 Investment in Bowden Equity in investee income 160,000 12/31/2017 3,200 Cash Cash 3,200 07/01/2018 69,600 Investment in Bowden Equity in investee income 69,600 07/01/2018 2018 1,600 Equity in investee income Investment in Bowden 1,600 07/01/2018 338,000 Cash Investment in Bowden Gain on sale of investment 274.800 X 63,200 09/15/2018 27,000 Equity in investee income Investment in Bowden 27,000 12/31/2018 52,200 Investment in Bowden Equity in investee income 52,200 12/31/2018 Cash 2,000 X Investment in Bowden 2,000 cash Dividend income Equity in investee income Gain on sale of investment Investment in Fisher Investment in Bowden Equity in investee income Gain on sale of investment Investment in Fisher Investment in Bowden Loss on sale of investment