S 15-16 (Algo) Recording equity method transactions LO P5 (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. View transaction list View journal entry worksheet No 1 Date January 01 General Journal Equity method investments Cash 2 November 01 3 December 31 Debit Credit 620,000 620,000 Cash 5,600 Equity method investments 5,600 Equity method investments Earnings from equity method investments 112,000 112,000 Required information Use the following information for the Quick Study below. [The following information applies to the questions displayed below.] Rowan Company purchases 400 common shares (40%) of JBI Corporation as a long-term investment for $620,000 cash on January 1. JBI paid $14,000 in total cash dividends on November 1 and reported net income of $280,000 for the year. QS 15-17 (Algo) Financial statement impact of equity method investments LO P5 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. 1. 1. 2. 2. 3. Assets = = Liabilities g-term investment for er 1 and reported net ents LO P5 f JBI dividends, and (3) the December ng each entry's effect on the reach. Liabilities + Equity