Rowan Co. purchases 700 common shares (40%) of JBI Corp. as a long-term investment for $650,000 cash on July 1. JBI Corp. paid $16,250 in total cash dividends on November 1 and reported net income of $325,000 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.

Journal entry worksheet

• Record the purchase of JBI shares.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Jul 01

Journal entry worksheet

• Record the receipt of the dividend.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Nov 01

Journal entry worksheet

• Record the adjustment required for the investment account.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Dec 31