Rosco Company purchased 35,000 shares of common stock of Paxton Corporation as a long-term investment for $900,000. During the year, Paxton Corporation reported net inom Assuming that the 35,000 shares represent a 10% interest in Paxton Corporation: 1. Prepare the journal entry to record the investment in Paxton stock. 2. Prepare any entries that Rosco Company should make in accounting for its investment in Paxton stock during the year. 3. What is the balance of the Stock Investments account on Rosco Company's books at the end of the year? (Credit account titles are automatically Indented when the amount is entered. Do not not indent manually.) No. Account Titles and Explanation Debit Credit Cost Method 1. Stock Investments 900,000 Cash 900.000 2. Stock Investments 60.000 Cash 20,000 3. Stock Investments account balance 940,000 Assuming that the 35,000 shares represent a 20% interest in Paxton Corporation: 1. Prepare the journal entry to record the investment in Paxton stock. 2. Prepare any entries that Rosco Company should make in accounting for its investment in Paxton stock during the year. 3. What is the balance of the Stock Investments account on Rosco Company's books at the end of the year? (Credit account titles are automatically Indented when the amount is entered. Do not Indent manually.) Date Account Titles and Explanation Debit Credit Equity Method 1. Stock Investments (To record purchase of 35,000 shares of Paxton's Corporation stock) 2 (To record 20% equity in Paxton's net income) (To record dividends received) 3. Stock Investments account balance