Please help with this question, I need to understand how to arrive to the journal entries requested. Are as follows:

1) record the cost of 27600 shares of Sumter Company 2) record the annual dividends declared and received from Sumter Company. Because declaration and payment are on the same day a dividend receivable account is unnecessary 3) Record the annual dividend declared and received from Sumter Company 4) Record the cost of 110,400 additional shares of Sumter Company 5) Record the entry to recognize the retrospective effect of the change to equity method 6) Record the annual dividend declared and received from Sumter 7) Record the accrued 2015 income based on 40% ownership of Sumter.

Problem 1-32 (L01-1,1-2, 1-3,1-4, 1-5a,1-5d) On January 1, 2013, Plano Company acquired 0 percent (27,600 shares) of the outstanding voting shares of the Sumter Company for $496,800, an amount equal to Sumter's underlying book and fair value. Sumter declares and pays a cash dividend to its stockholders each year of $172,500 on September 15. Sumter reported net income of $304,000 in 2013, $374,000 in 2014, $414,000 in 2015, and $394,000 in 2016. Each income gure can be assumed to have been earned evenly throughout its respective year. In addition, the fair value of these 27,600 shares was indeterminate, and therefore the investment account remained at cost. On January 1, 2015, Plano purchased an additional 32 percent (110,400 shares) of Sumter for $2,324,150 in cash and began to use the equity method. This price represented a $63,000 payment in excess of the book value of Sumter's underlying net assets. Plano was willing to make this extra payment because of a recently developed patent held by Sumter with a 15-year remaining life. All other assets were considered appropriately valued on Sumter's books. On July 1, 2016, Piano sold 10 percent (34,500 shares) of Sumter's outstanding shares for $1,069,500 in cash. Although it sold this interest, Plano maintained the ability to signicantly inuence Sumter's decision-making process. Assume that Plano uses a weighted average costing system. Prepare the journal entries for Piano for the years of 2013 through 2016. (If no entry is required for a transactionlevent, select "No journal entry required" in the rst account field. Do not round intermediate calculations. Round your nal answers to the nearest whole dollar.) X [ viewtransa transaction list | | 1. Record the cost of 27,600 shares of Sumter Company. Prepare [\"8 Journal er'IIFIBS for Piano TDF me years OT ZU'IJ lI'll'DUgl'l ZU'ID. {II no entry I5 reqmreu for a transactionlevent, select "No journal entry required" in the rst account field. Do not round intermediate calculations. Round your nal answers to the nearest whole dollar.) X I viewtransa transaction list 1. Record the cost of 27,600 shares of Sumter Company. 2. Record the annual dividends declared and received from Sumter Company. Because declaration and payment are on same clay, a dividend receivable account is unnecessary. 3. Record the annual dividends declared and received from Sumter Company. 4. Record the cost of 110,400 additional shares of Sumter Company. 5. Record the entry to recoginze the retrospective effect of change to equity method. 6. Record the annual dividend declared and received from Sumter. 7. Record the accrued 2015 income based on 40% ownership of Sumter. -= journal entry has been entered