Required information ED-1 (Algo) Recording and Reporting an Equity Method Security [The following information applies to the questions displayed below.] Felicia Company acquired 20,000 of the 80,000 shares of outstanding common stock of Nueces Corporation as a longterm investment. The annual accounting period for both companies ends December 31. The following transactions occurred during the year: January 10 Purchased 20,000 shares of Nueces common stock at $16 per share. December 31 Nueces Corporation reported net income of $97,000. December 31 Nueces Corporation declared and paid a cash dividend of $0.50 per share. December 31 Determined the fair value of Nueces stock to be $15 per share. D-1 (Algo) Part 2 2. Prepare the journal entries for each of these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the purchase of 20,000 shares (25\%) of the common stock of Nueces Corporation at $16 per share. Note: Enter debits before credits. Journal entry worksheet Record Felecia Company's share of the $97,000 net income reported by Nueces Corporation. Note: Enter debits before credits. Journal entry worksheet 2 Record the valuation adjustment if the fair value of Nueces' common stock on December 31 is $15 per share. Note: Enter debits before credits