Prepare entries to record the following transactions of Garcia Company. 20X1 Jan. 1 Purchased 400 shares of Lopez Co. common stock for $3,000 cash. Lopez has 1,000 shares of common stock outstanding, and its policies will be significantly influenced by Garcia. Aug. 1 Lopez declared and paid a cash dividend of $2 per share. Dec. 31 Lopez announced that net income for the year is $2,500. 20X2 Aug. 1 Dec. 31 Lopez declared and paid a cash dividend of $2.25 per share. Lopez announced that net income for the year is $2,750. 20X3 Jan. 1 Garcia sold 100 shares of Lopez for $1,300 cash