Presented below are two independent situations:

1. Potomac Inc. acquired 10% of the 500,000 shares of common stock of Maryland Corporation at a total cost of $11 per share on June 17, 2010. On September 3, Maryland declared and paid a $160,000 dividend. On December 31, Maryland reported net income of $550,000 for the year.

2. Andy Fisher Corporation obtained significant influence over Bandit Company by buying 30% of Bandit’s 100,000 outstanding shares of common stock at a cost of $18 per share on January 1, 2010. On May 15, Bandit declared and paid a cash dividend of $150,000. On December 31, Bandit reported net income of $270,000 for the year.

Prepare all necessary journal entries for 2010 for

(1) Potomac and

(2) Andy Fisher.