At a total cost of $720,000, Herrera Corporation acquired 50,000 shares of Tran Corp. common stock as a long-term investment. Tran Corp. has 200,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation.

a. Journalize the entries by Herrera Corporation to record the following information: If an amount box does not require an entry, leave it blank.

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1. Tran Corp. reports net income of $1,300,000 for the current period.

blank	CashIncome of Tran Corp.Interest RevenueInvestment in Tran Corp. StockNotes Receivable	- Select -	- Select -
	CashIncome of Tran Corp.Interest RevenueInvestment in Tran Corp. StockNotes Receivable	- Select -	- Select -

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2. A cash dividend of $1.60 per common share is paid by Tran Corp. during the current period.