Please assist with the following:

Assessing Financial Statement Effects of Equity Method Securities The following transactions involve investments in marketable securities and are accounted for using the equity method. (1) Healy Co. purchases 15,000 common shares of Palepu Co. at $8 cash per share; the shares represent 25% ownership of Palepu. (2) Healy receives a cash dividend of $0.80 per common share from Palepu. (3) Palepu reports annual net income of $120,000. (4) Healy sells all 15,000 common shares of Palepu for $140,000 cash.

a. Prepare journal entries to record these four transactions. b. Post the journal entries from a. to their respective T-accounts. c. Record each of the transactions in the financial statement effects template.

c. Record each of the transactions in the financial statement effects template.

Use negative signs with answers when appropriate.

General Journal Ref. Description Debit Credit (1)Investment in Palepu Co. 20,000 0 Cash 0 20,000 (2) Cash 2,000 0 Investment in Palepu Co. 12,000 (3) Investment in Palepu Co. 30,000 0 Investment income 0 30,000 (4) Cash 40,000 Gain on sale of investment + 0 38,000X Investment in Palepu Co. 0 2,000 X