Information pertaining to long-term investments in stock in 2005 by Tate Corporation follows:
Acquired 15% of the 250,000 shares of common stock of Barkly Company at a total cost of $8 per share on January 1, 2005. On July 1, Barkly Company declared and paid a cash dividend of $2 per share. On December 31, Barkly 's reported net income was $654,000 for the year.
Obtained significant influence over Wynn Company by buying 30% of Wynn's 100,000 outstanding shares of common stock at a total cost of $22 per share on January 1, 2005. On June 15, Wynn Company declared and paid a cash dividend of $1.75 per share. On December 31, Wynn's reported net income was $280,000.
Instructions
Prepare all necessary journal entries for 2005 for Tate Corporation.