PLEASE ANSWER BOTH QUESTIONS

Instructions The following equity investment transactions were completed by Romero Company during a recent year: Apr 10 Purchased 4,400 shares of Dixon Company for a price of $50 per share plus a brokerage commission of $115 July 8 Received a quarterly dividend of $0.65 per share on the Dixon Company investment Sept 10 Sold 1,200 shares for a price of $41 per share less a brokerage commission of $90. Journalize the entries for these transactions. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar Instructions At a total cost of $6,290,000, Hra Corporation acquired 161,000 shares of Tran Corp. common stock as a long-term investment. Herrera Corporation uses the equity method of accounting for this investment. Tran Corp. has 700,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation. Required: A. Journalize the entries by Herrera Corporation on December 31 to record the following information (refer to the Chart of Accounts for exact wording of account titles): 1. Tran Corp. reports net income of $753,000 for the current period. 2. A cash dividend of $0.40 per common share is paid by Tran Corp. during the current period B. Why is the equity method appropriate for the Tran Corp. investment