Prepare the journal entries for an investment accounted for under the equity method.

a. On January 2, 2017, Workowski Corporation purchased 55,000 shares (26%) of Wendy Company at a cost of $8 per share.

b. At the end of 2017, Wendy Company reported net income of $350,000 (Workowski's share is 26%).

c. Wendy Company reported a $215,000 net loss for 2017. Workowski's share of the loss is 26%.

d. In early 2018, Wendy Company paid a $75,000 dividend. Workowski's share is 26%.