On Java's books, Prepare the appropriate journal entries to recognize the first quarter accounting for Newark Coffe earnings.

Intercompany sales Q1 2018

java the Hut coffee bean sales to New Castle Coffee $15,500

Intercompnay inventory (on hand on 3/31/18)

Coffee bean inventory from Java the Hut sales to New castle coffee $3,500

Equity investment - newark coffee earnings

equity reported by Newark Coffee for the first quarter of 2018 were $10,250

Journal entry will be: (I need the dollar amounts)

Investment in Newark Coffee _____?_______

Income from Newark Coffee _______?_______

Record equity earning for Newark Coffee (40%)