QS C-15 Equity method transactions LO P5 Rowan Co. purchases 100 common shares (40%) of JBI Corp. as a long-term investment for $500,000 cash on July 1. JBI Corp. paid $5,000 in total cash dividends on November 1 and reported net income of $100,000 for the year. (1) - (3) Prepare Rowan's entries to record the purchase of JBI shares, the receipt of its share of JBI dividends and the December 31 year-end adjustment for its share of JBI net income. Answer is complete but not entirely correct. No General Journal Credit Date Jul 01 Debit 500,000 Equity method investments Cash 500,000 Nov 01 5,000 X Cash Equity method investments 5,000 X Dec 31 40,000 Equity method investments Earnings from equity method investments 40,000