Warren Buffet, an investor in Alpha Co., asked you for advice on the propriety of Alpha's financial reporting for two of its investments. Assume that Alpha does not elect the fair value option for reporting its financial assets and liabilities. You obtained the following information related to the investments from Alpha's December 31, 2015 financial statements:

> 20% ownership interest in Beta Co., represented by 200,000 shares of outstanding common stock purchased on January 2, 2015, for $600,000.

> 20% ownership interest in Charlie Co., represented by 20,000 shares of outstanding common stock purchased on January 2, 2015, for $300,000.

> On January 2, 2015, the carrying values of the acquired shares of both investments equaled their purchase price.

> Beta reported earnings of $400,000 for the year ended December 31, 2015, and declared and paid dividends of $100,000 on 12/15/2015.

> Charlie reported earnings of $350,000 for the year ended December 31, 2015, and declared and paid dividends of $60,000 on 12/15/2015.

> On December 31, 2015, Beta's and Charlie's common stock were trading over-the-counter at $18 and $20 per share, respectively.

> The investment in Charlie is accounted for using the equity method.

> The investment in Beta is accounted for as available-for-sale securities. You recalculated the amounts reported in Alpha's December 31, 2015 financial statements, and determined that they were correct. Stressing that the information available in the financial statements was limited, you advised Warren that, assuming Alpha properly applied generally accepted accounting principles, Alpha

may have appropriately used two different methods to account for its investments in Beta and Charlie, even though the investments represent equal ownership interests.

Prepare the general journal entries for the following:

Alpha's investment in Charlie Co. on January 2, 2015.

Dividends received from Charlie in 2015.

Required for Charlie's reported income for the year ending on December 31, 2015.

Alpha's investment in Beta Co. on January 2, 2015.

Dividends received from Beta in 2015.

Required for Beta's reported income for the year ending on December 31, 2015