On January 2, Todd Company acquired 40% of the outstanding stock of McGuire Company for $205,000. For the year ending, December 31, McGuire earned income of $48,000 and paid dividentsof $14,000.Required:Prepare the entries for Todd Company for the purchase of the stock, share of McGuire income anddividends received from McGuire.Journalize the entries to record the following selected bona investment transactions for Southwest(1) Purchased for cash $400,000 of Daytona Beach 5% bonds at 100 plusaccrued interest of $4,500.(2) Received first semiannual interest.(3) Sold $250,000 of the bonds at 97 plus accrued interest of $1,800