Question $5(15$ marks$)$

Eddie Ltd$.$ invested in Wednesday Ltd$.$ The equity method is used to account for this investment because Eddie Ltd$.$ exercises significant influence over Wednesday Ltd$.$ The following events took place during Year $8$:

$$ January $1$Eddie Ltd$.$ purchased $3,000$ common shares of Wednesday Ltd$.$ for $$12$ per share. This is $30\%$ of the shares. Eddie Ltd$.$ determined it has significant influence.

$$ March $31$Wednesday Ltd$.$ paid a $$1\mathrm{.}75$ per share dividend to all common shareholders.

$$ December $31$The market price of Wednesday Ltd$.$ shares is $$12\mathrm{.}50$ per share.

$$ December $31$Wednesday Ltd$.$ reported net income of $$80,000.$

Required

a$.$ Prepare the journal entry for January $1.$

b$.$ Prepare the journal entry for March $31.$

c$.$ Prepare the journal entry for December $31$ market price of shares.

d$.$ Prepare the journal entry for December $31$ net income report.