Entries for equity investments: 20%–50% ownership
On January 4, 20Y4, Ferguson Company purchased 84,000 shares of Silva Company's common stock directly from one of the founders for a price of $40 per share. Silva has 300,000 shares outstanding, including the Daniels shares. On July 2, 20Y4, Silva paid $244,000 in total dividends to its shareholders. On December 31, 20Y4, Silva reported a net income of $785,000 for the year.
a. Journalize the Ferguson Company entries for the transactions involving its investment in Silva Company during 20Y4. If an amount box does not require an entry, leave it blank.
20Y4, Jan. 4
CashDividend RevenueIncome of Silva CompanyInvestment in Silva Company StockNotes Receivable
- Select - - Select -
CashDividend RevenueIncome of Silva CompanyInvestment in Silva Company StockNotes Receivable
- Select - - Select -
20Y4, July 2
CashDividend RevenueIncome of Silva CompanyInvestment in Silva Company StockNotes Receivable
- Select - - Select -
CashDividend RevenueIncome of Silva CompanyInvestment in Silva Company StockNotes Receivable
- Select - - Select -
20Y4, Dec. 31
CashDividend RevenueIncome of Silva CompanyInvestment in Silva Company StockNotes Receivable
- Select - - Select -
CashDividend RevenueIncome of Silva CompanyInvestment in Silva Company StockNotes Receivable
- Select - - Select -
b. Determine the December 31, 20Y4, balance of Investment in Silva Company Stock.