Analyze Rowan’s entries (1 through 3) from QS 15-16 by showing each entry’s effect on the accounting equation—specifically, identify the accounts and amounts (including + or −) for each.

Data from Question 16

Rowan Co. purchases 100 common shares (40%) of JBI Corp. as a long-term investment for $500,000 cash on January 1. JBI paid $5,000 in total cash dividends on November 1 and reported net income of $100,000 for the year. Prepare Rowan’s entries to record

(1) the purchase of JBI shares,

(2) the receipt of its share of JBI dividends,

(3) the December 31 year-end adjustment for its share of JBI net income.