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On May 1, 2020, Cheng Company, a public company, acquired 138,840 of the 534,000 outstanding common shares from Amiah Company for a total of $1,947,000. This investment is part of Cheng Company's long-term business diversification plan. Cheng Company's year-end is December 31, and it chooses to use the equity method of accounting for its strategic investments. During 2020, the following investment activities occurred. 1) Amiah Company recorded an annual net income of $1,004,000 for its 2019-2020 fiscal year-end of June 30, 2020. 2) Amiah Company paid a cash dividend of $ 245,000 on July 30, 2020. Required Prepare journal entries to record the acquisition of shares by Cheng Company, the revenue of investment from Amiah Company on June 30, 2020 and the receipt of cash dividends on July 30, 2020. For simplicity, calculate any share of profit strictly as a percentage of the current holdings, although those shares have not been held for a full year. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Date Account Title and Explanation Debit Credit May 1 . To record acquisition of common shares Jun 30 . To record profit on equity investment Jun 30 . To record dividends received on equity investment

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