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On January 1, Marigold Inc. purchased 3,750 of the 15,000 outstanding shares of common stock...

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Accounting

On January 1, Marigold Inc. purchased 3,750 of the 15,000 outstanding shares of common stock of Nature Net Inc. obtaining significant influence of the company. The shares were purchased for $5,000 cash and Marigold Inc. intends for it to be a long-term investment. During the year, Nature Net Inc. reported net income of $26,000 and declared and paid dividends of $12,000.
Additional information concerning 2021 is as follows.
Sales were $3,200, all for cash.
Purchases were $2,000, all paid in cash.
Salaries were $750, all paid in cash.
Property, plant, and equipment was originally purchased for $1,900 and is depreciated straight-line over a 25-year life with no salvage value.
Ending inventory was $1,800.
Cash dividends of $90 were declared and paid by Marigold.
Ignore taxes.
The market rate of interest on bonds of similar risk was 12% during all of 2021, their face value was $8,000, and the coupon rate is equal to 10%.
Interest on the bonds is paid semiannually each June 30 and January 1.
In the Excel file, record the journal entries and folfow the accounting process to create the financial statements.
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