Heidebrecht Design acquired 25% of the outstanding common stock of Sunland Company on January 1, 2020, by paying $854,000 for the 42,700 shares. Sunland declared and paid $0.30 per share cash dividends on March 15, June 15, September 15, and December 15, 2020. Sunland reported net income of $390,500 for the year. At December 31, 2020, the market price of Sunland common stock was $26 per share.

Prepare the journal entries for Heidebrecht Design for 2020 assuming Heidebrecht Design cannot exercise significant influence over Sunland. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Prepare the journal entries for Heidebrecht Design for 2020, assuming Heidebrecht Design can exercise significant influence over Sunland. Use the equity method. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Indicate the balance sheet and income statement account balances at December 31, 2020, under each method of accounting. Cost Method Equity Method Stock Investments Dividend revenue Unrealized gain income Revenue from stock investments