Heidebrecht Design acquired 25% of the outstanding common stock of Carla Vista Company on January 1, 2020, by paying $651,000 for the 43,400 shares. Carla Vista declared and paid $0.50 per share cash dividends on March 15, June 15, September 15, and December 15, 2020. Carla Vista reported net income of $351,000 for the year. At December 31, 2020, the market price of Carla Vista common stock was $25 per share.

Prepare the journal entries for Heidebrecht Design for 2020 assuming Heidebrecht Design cannot exercise significant influence over Carla Vista.

Date	Account Titles and Explanation	Debit	Credit
Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31
Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31
Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31
Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31
Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31
Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31

Prepare the journal entries for Heidebrecht Design for 2020, assuming Heidebrecht Design can exercise significant influence over Carla Vista. Use the equity method.

Indicate the balance sheet and income statement account balances at December 31, 2020, under each method of accounting