Heidebrecht Design acquired25% of the outstanding common stock of Sheridan Company on January 1, 2020, by paying $742,500for the49,500shares. Sheridan declared and paid $0.20per share cash dividends on March 15, June 15, September 15, and December 15, 2020. Sheridan reported net income of $368,000for the year. At December 31, 2020, the market price of Sheridan common stock was $27per share.

Prepare the journal entries for Heidebrecht Design for 2020 assuming Heidebrecht Design cannot exercise significant influence over Sheridan