On January 6, Year 1, Bulldog Co. purchased 29% of the outstanding stock of Gator Co. for $176,000. Gator Co. paid total dividends of $19,400 to all shareholders on June 30. Gator Co. had a net loss of $33,400 Year 1.

a. Journalize Bulldog's purchase of the stock, receipt of the dividends, and the adjusting entry for the equity loss in Gator Co. stock.

Jan. 6 - Purchase	CashCash DividendsDividend RevenueInvestment in Gator Co. StockLoss on Gator Co. StockNotes Receivable	- Select -
	CashCash DividendsDividend RevenueInvestment in Gator Co. StockLoss on Gator Co. StockNotes Receivable		- Select -
June 30 - Dividend	CashCash DividendsDividend RevenueInvestment in Gator Co. StockLoss on Gator Co. StockNotes Receivable	- Select -
	CashCash DividendsDividend RevenueInvestment in Gator Co. StockLoss on Gator Co. StockNotes Receivable		- Select -
Dec. 31 - Equity Loss	CashCash DividendsDividend RevenueInvestment in Gator Co. StockLoss of Gator Co.Notes Receivable	- Select -
	CashCash DividendsDividend RevenueInvestment in Gator Co. StockLoss on Gator Co. StockNotes Receivable		- Select -

b. Compute the balance of Investment in Gator Co. Stock on December 31, Year 1. $fill in the blank 8539b1019024fcb_1

c. How does valuing an investment under the equity method differ from valuing an investment at fair value?

Under the

equityfair value

method, the investor will record their proportionate share of the net increase (or decrease) of the book value of the investee resulting from earnings and dividend distributions. The

equityfair value

method uses market price information to value the investment in the investee.

2)

Materials issued for the current month are as follows:

Requisition No.	Material	Job No.	Amount
103	Plastic	400	$27,610
104	Steel	402	36,000
105	Glue	Indirect	2,200
106	Rubber	403	3,340
107	Titanium	404	87,620

Journalize the entry to record the issuance of materials.

For a compound transaction, if an amount box does not require an entry, leave it blank.

	Accounts PayableAccounts ReceivableCashFinished GoodsMaterialsWork in Process	- Select -	- Select -
	Accounts PayableCashFactory OverheadFinished GoodsMaterialsWages Payable	- Select -	- Select -
	Accounts PayableCashFactory OverheadFinished GoodsMaterialsWork in Process	- Select -	- Select -

3)During Year 2, Copernicus Corporation held a portfolio of available-for-sale securities having a cost of $235,400. There were no purchases or sales of investments during the year. The market values at the beginning and end of the year were $277,800 and $223,600, respectively. The net income for Year 2 was $216,600, and no dividends were paid during the year. The Stockholders' Equity section of the balance sheet was as follows on December 31, Year 1:

Copernicus Corporation Stockholders' Equity December 31, Year 1
Common stock	$49,000
Paid-in capital in excess of par	372,000
Retained earnings	489,600
Unrealized gain on available-for-sale investments	42,400
	Total stockholders' equity	$953,000

3)During Year 2, Copernicus Corporation held a portfolio of available-for-sale securities having a cost of $235,400. There were no purchases or sales of investments during the year. The market values at the beginning and end of the year were $277,800 and $223,600, respectively. The net income for Year 2 was $216,600, and no dividends were paid during the year. The Stockholders' Equity section of the balance sheet was as follows on December 31, Year 1:

Copernicus Corporation Stockholders' Equity December 31, Year 1
Common stock	$49,000
Paid-in capital in excess of par	372,000
Retained earnings	489,600
Unrealized gain on available-for-sale investments	42,400
	Total stockholders' equity	$953,000

Prepare the Stockholders' Equity section of the balance sheet for December 31, Year 2.

Available-for-sale investments, at costAvailable-for-sale investments, at fair valueCashCommon stockUnrealized gain (loss) on available-for-sale investments	$- Select -
Available-for-sale investments, at costAvailable-for-sale investments, at fair valueCashExcess of issue price over parValuation allowance on available-for-sale investments	- Select -
Available-for-sale investments, at costAvailable-for-sale investments, at fair valueCashRetained earningsValuation allowance for available-for-sale investments	- Select -
Available-for-sale investments, at costCashCommon stockExcess of issue price over parUnrealized gain (loss) on available-for-sale investments	- Select -
Total stockholders' equity	$fill in the blank 9