At a total cost of $942,000, Randall Corporation acquired 40,000 shares of Banjo Corp. as a long-term investment. Randall Corporation uses the equity method of accounting for this investment. Banjo Corp. has 160,000 common shares outstanding, including the shares acquired by Randall Corporation.
Journalize the entries by Randall Corporation to record the following information:
a. Banjo Corp. reports net income of $2,430,000 for the current period.
b. A cash dividend of $1.75 per common share is paid by Banjo Corp. during the current period.