For 2018, Sabil Corporation earned net income of $480,000 and paid dividends of $18,000. At January 1, 2018, Sabil had $200,000 of $10 par value common stock outstanding and $1,500,000 of retained earnings. On January 1, 2018, Phyit Corporation bought outstanding common stock of Sabil paying $200,000. All payments made by Phyit in excess of book value were attributable to equipment, which is depreciated over ten years on a straight-line basis.

Prepare Phyits general journal entry for the acquisition of common stock of Sabil, the recognition of dividend income, and/or net income participation in Sabil under the following assumptions:

1. Phyit purchased 10% of outstanding common stock.

2. Phyit purchased 20% of outstanding common stock.