Parkin Corporation created Sunlight Corporation with a transfer of $800 cash. During Sunlight Corp.’s first year of operations, it generated a net loss of $150 and paid no dividends. During Sunlight Corp.’s second year of operations, it generated net income of $350 and paid dividends of $80.   

a) Pass Journal Entries in the Book of Parkin Corporation for two years using Equity Method.

b) Prepare ‘Investment in Sunlight Corporation Account’ for two years and show the balance of each year in the Book of Parent Company using Equity Method .