Question: Please prepare accounting entries or answer the questions asked for the following independent situations: 1. Diamond Company owns 40% of the stock of Silver Company.

Please prepare accounting entries or answer the questions asked for the following independent situations: 1. Diamond Company owns 40% of the stock of Silver Company. On January 1,2019 , Silver reports total income of $4,000,000. On June 1, 2019, Silver pays total dildends to its shareholders of $1,000,000. Prepare the necessary accounting entries for Diamond. 2. May Company purchased a bond lsaued by August Company on September 1, 2019 for $1,000,000. The bond is properly classified as Tradine. On December 31, 2019, the market price of the bond is $1,100,000. Prepare the appropriate adjusting entry for May Company

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