Heidebrecht Design acquired30% of the outstanding common stock of Quayle Company on January 1, 2015, by paying $856,000for the42,800shares. Quayle declared and paid $0.40per share cash dividends on March 15, June 15, September 15, and December 15, 2015. Quayle reported net income of $301,400for the year. At December 31, 2015, the market price of Quayle common stock was $26per share.

(a) Prepare the journal entries for Heidebrecht Design for 2015 assuming Heidebrecht Design cannot exercise significant influence over Quayle. Use the cost method and assume that Quayle common stock should be classified as a trading security.(Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

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