The following transactions involve investments in marketable securities and are accounted for using the equity method.

(1) Purchased 12,000 common shares of Barth Co. at $9 cash per share; the shares represent 30% ownership in Barth.

(2) Received a cash dividend of $1.25 per common share from Barth.

(3) Recorded income from Barth stock investment when Barth's net income is $80,000.

(4) Sold all 12,000 common shares of Barth for $120,500.

a. Prepare journal entries to record these four transactions.

b. Post the journal entries from a to their respective T-accounts.

c. Record each of the transactions in the financial statement effects template.