Peacock Ltd. owned 90,000 of Seagull Corporation's 100,000 common shares. On January 1, 2020, Peacock carried a balance in its "Investment in Seagull" account of $1,400,000. Peacock also had a balance of $20,000 in its contributed surplus account.

On January 1, 2020, Seagull issued an additional 25,000 common shares for $12.50 per share. Peacock chose to not purchase any of the new shares issued on January 1, 2020.

Prepare the journal entry to be recorded on the books of Peacock Ltd. to record the effect of Seagull issuing new common shares.