Entries for equity investments: 20%–50% ownership On January 4, 20Y4, 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 Daniels shares. On July 2, 20Y4, 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. Question Content Area 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 - Select - - Select - - Select - - Select - 20Y4, July 2 - Select - - Select - - Select - - Select - 20Y4, Dec. 31 - Select - - Select - - Select - - Select -
Entries for equity investments: 20%–50% ownership
On January 4, 20Y4, 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 Daniels shares. On July 2, 20Y4, 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.
Question Content Area
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 |
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- Select - | - Select - |
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- Select - | - Select - | |
| 20Y4, July 2 |
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- Select - | - Select - |
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- Select - | - Select - | |
| 20Y4, Dec. 31 |
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- Select - | - Select - |
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- Select - | - Select - |
Question Content Area
b. Determine the December 31, 20Y4, balance of the investment in Silva Company stock account.
$fill in the blank 212a4a012075fc0_1
The investment in other business is recorded as assets in the business. The investment value increases with net income of the invested company and decreases with the dividend received.
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