Planner Corporation purchased 100 percent of Schedule Company’s stock on January 1, 20X4, for $340,000. On that date, Schedule reported net assets with a historical cost of $300,000 and a fair value of $340,000. The difference was due to the increased value of buildings with a remaining life of 10 years. During 20X4 and 20X5, Schedule reported net income of $10,000 and $20,000 and paid dividends of $6,000 and $9,000, respectively.

Required

Assuming that Planner Corporation uses the equity method in accounting for its ownership of Schedule Company, give the journal entries that Planner recorded in 20X4 and 20X5.