On January 7, 20xx, Jibb Corporation purchased 30% of the outstanding voting common stock of Fancy Company for $650,000. This purchase gave Jibb the ability to exercise significant influence over the operating and financial policies of Fancy. On the date of purchase, Fancys books reported assets of $2,300,000 and liabilities of $870,000. Any excess of cost over book value of Jibbs investment was attributed to a patent with a remaining useful life of nine years.

During 20xx, Fancy reported net income of $350,000 and declared and paid cash dividends of $70,000. In the following year, 20x1, Fancy reported net income of $390,000 and declared and paid cash dividends of $112,000. In 20xx, Jibb sold inventory costing $70,000 to Fancy for $85,000. Fancy sold 80% of that inventory to outsiders during 20xx with the remainder being sold in 20x1. During 20x1, Jibb sold inventory costing $110,000 to Paulson for $130,000. Fancy sold 80% of that inventory to outsiders during 2021.

Prepare all of Jibbs journal entries for 20xx to apply the equity method.