Refer to the Above Facts

Essay

Refer to the above facts. Assume that, in addition to the revenue and expenses it recognized for Sable Company's operations, Pastel Corporation had net sales of $4,800,000 and total costs and expenses of $3,300,000, but declared no dividends.
Prepare closing entries (omit explanations) on March 31, 2006, for Pastel Corporation under the:
a. Equity method of accounting
b. Cost method of accounting