On January 1, 2018, PurchaseAgent.com acquired 35 percent (800,000 shares) of the common shares of E-Transaction Corporation. The accounting period for both companies ends December 31. Prepare the journal entries for each of the following transactions that occurred during 2018 for PnrchaseAgent.com:
July 2 E-Transaction declared and paid a cash dividend of $5 per share.
Dec. 31 E-Transaction reported net earnings of $400,000.