Required information [The following information applies to the questions displayed below.] Rowan Company purchases 100 common shares (40%) of JBI Corporation as a long-term investment for $500,000 cash on January 1. JBI 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 and correct. No Date General Journal Debit Credit 1 January 01 500,000 Equity method investments Cash 500,000 2 November 01 Cash 2,000 Equity method investments 2,000 3 December 31 40,000 Equity method investments Earnings from equity method investments 40,000 Required information [The following information applies to the questions displayed below.) Rowan Company purchases 100 common shares (40%) of JBI Corporation as a long-term investment for $500,000 cash on January 1. JBI paid $5,000 in total cash dividends on November 1 and reported net income of $100,000 for the year. Rowan made entries to record (1) the purchase of JBI shares, (2) the receipt of its share of JBI dividends, and (3) the December 31 year- end adjustment for its share of JBI net income. Analyze Rowan's entries by showing each entry's effect on the accounting equation, specifically, identify the accounts and amounts (including + or -) for each. Assets Liabilities Equity + + 1. 1. = + 2. = + 2. Accounts payable II II II = (+) increase + + + 3. Accounts receivable (-) decrease Accumulated depreciation-Building Accumulated depreciation Equipment