Accounting for equity investments; 20%-50% ownership On January 4, 2014, Ferguson Company purchased 480,000 shares of...

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Accounting for equity investments; 20%-50% ownership On January 4, 2014, Ferguson Company purchased 480,000 shares of Silva Company's common stock directly from one of the founders for a price of $30 per share. Silva has 1,200,000 shares outstanding, including the Ferguson shares. On July 2, 2014, Silva paid $750,000 in total dividends to its shareholders. On December 31, 20Y4, Silva reported a net income of $2,000,000 for the year. a. Journalize the Ferguson Company entries for the transactions involving its investment in Silva Company during 2014. If an amount box does not require an entry, leave it blank. 20Y4 Jan. 4 20Y4 July 2 20Y4 Dec. 31 b. Determine the December 31, 20Y4, balance of the investment in Silva Company stock account. Accounting for equity investments; 20%-50% ownership On January 4, 2014, Ferguson Company purchased 480,000 shares of Silva Company's common stock directly from one of the founders for a price of $30 per share. Silva has 1,200,000 shares outstanding, including the Ferguson shares. On July 2, 2014, Silva paid $750,000 in total dividends to its shareholders. On December 31, 20Y4, Silva reported a net income of $2,000,000 for the year. a. Journalize the Ferguson Company entries for the transactions involving its investment in Silva Company during 2014. If an amount box does not require an entry, leave it blank. 20Y4 Jan. 4 20Y4 July 2 20Y4 Dec. 31 b. Determine the December 31, 20Y4, balance of the investment in Silva Company stock account.