Mar. 16 Journalize the entries to record the following selected equity investment transactions completed by Yerbury during a recent year: Feb. 2 Purchased for cash 1,200 shares of Wong Inc. stock for $36 per share plus a $600 brokerage commission. Received dividends of $0.20 per share on Wong Inc. stock. June 7 Purchased 900 shares of Wong Inc. stock for $47 per share plus a $450 brokerage commission. July 26 Sold 1,450 shares of Wong Inc. stock for $52 per share less a $725 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold. Sept. 25 Received dividends of $0.30 per share on Wong Inc. stock. In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Feb. 2 a Mar. 16 June 7 II III July 26 Sept. 25 Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 112,000 shares of Silva Company directly from one of the founders for a price of $57 per share. Silva has 350,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $274,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $1,046,000 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. Mar. 16 Journalize the entries to record the following selected equity investment transactions completed by Yerbury during a recent year: Feb. 2 Purchased for cash 1,200 shares of Wong Inc. stock for $36 per share plus a $600 brokerage commission. Received dividends of $0.20 per share on Wong Inc. stock. June 7 Purchased 900 shares of Wong Inc. stock for $47 per share plus a $450 brokerage commission. July 26 Sold 1,450 shares of Wong Inc. stock for $52 per share less a $725 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold. Sept. 25 Received dividends of $0.30 per share on Wong Inc. stock. In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Feb. 2 a Mar. 16 June 7 II III July 26 Sept. 25 Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 112,000 shares of Silva Company directly from one of the founders for a price of $57 per share. Silva has 350,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $274,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $1,046,000 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
