On January 6, Year 1, Bulldog Co. purchased 34% of the outstanding stock of Gator Co. for $180,300. Gator Co. paid total dividends of $20,100 to all shareholders on June 30. Gator had a net loss of $54,700 for Year 1. Required: A. Journalize Bulldog's purchase of the stock, receipt of the dividends, and the adjusting entry for the equity loss in Gator Co. stock. Refer to the Chart of Accounts for exact wording of account titles. B. Compute the balance of Investment in Gator Co. Stock on December 31, Year 1. C. How does valuing an investment under the equity method differ from valuing an investment at fair value? General Ledger ASSETS REVENUE 410 Sales 110 Cash 111 Petty Cash 120 Accounts Receivable 611 Interest Revenue 612 Dividend Revenue 121 Allowance for Doubtful Accounts 131 Notes Receivable 621 Income of Gator Co. 631 Gain on Sale of Investments 641 Unrealized Gain on Trading Investments 132 Interest Receivable 141 Merchandise Inventory EXPENSES 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 161 Investment in Gator Co. Stock 165 Valuation Allowance for Trading Investments 166 Valuation Allowance for Available-for-Sale Investments 181 Land 191 Store Equipment 192 Accumulated Depreciation Store Equipment 193 Office Equipment 194 Accumulated Depreciation Office Equipment 511 Cost of Merchandise Sold 512 Bad Debt Expense 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 534 Selling Expenses 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense LIABILITIES 210 Accounts Payable 221 Notes Payable 538 Store Supplies Expense 561 Depreciation Expense-Store Equipment 231 Interest Payable 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 241 Salaries Payable 251 Sales Tax Payable 710 Interest Expense 721 Loss of Gator Co. 731 Loss on Sale of Investments 741 Unrealized Loss on Trading Investments EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Treasury Stock 332 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 350 Unrealized Gain (Loss) on Available-for-Sale Investments 351 Cash Dividends 352 Stock Dividends 390 Income Summary