Problem 16-04A a-C Heidebrecht Design acquired 20% of the outstanding common stock of Sandhill Company on January 1, 2020, by paying $750,000 for the 50,000 shares. Sandhill declared and paid $0.50 per share cash dividends on March 15, June 15, September 15, and December 15, 2020. Sandhill reported net income of $392,500 for the year. At December 31, 2020, the market price of Sandhill common stock was $26 per share. Prepare the journal entries for Heidebrecht Design for 2020 assuming Heidebrecht Design cannot exercise significant influence over Sandhill. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 Stock Investments 750000 cash 750000 Mar. 15 Cash 25000 Dividend Revenue 25000 June 15 Cash 25000 Dividend Revenue 25000 Sept. 15 Cash 25000 Dividend Revenue 25000 Dec. 15 Cash 25000 Dividend Revenue 25000 Dec. 31 Fair Value Adjustment-Stock 550000 Unrealized Gain or Loss-Income 550000 Prepare the journal entries for Heidebrecht Design for 2020, assuming Heidebrecht Design can exercise significant influence over Sandhill. Use the equity method. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 Stock Investments 750000 Cash 750000 Mar. 15 Tcash 25000 Stock Investments 25000 June 15 Cash 25000 Stock Investments 25000 Sept. 15 Cash 25000 Stock Investments 25000 Dec. 15 cash 25000 Stock Investments 25000 Dec. 31 v Stock Investments 78500 Revenue from Stock Investments 78500 Your answer is partially correct. Try again. Indicate the balance sheet and income statement account balances at December 31, 2020, under each method of accounting. Cost Method Equity Method X Stock Investments 1300000 1278500 Dividend revenue 100000 0 Unrealized gain income 550000 0 Revenue from stock investments 0 78500 Click if you would like to Show Work for this question: Open Show Work