In: Accounting
Selk Steel Co., which began operations on January 4, 2017, had
the following subsequent transactions and events in its long-term
investments.
2017
Jan. | 5 | Selk purchased 80,000 shares (30% of total) of Kildaire's common stock for $1,200,000. | ||
Oct. | 23 | Kildaire declared and paid a cash dividend of $4.80 per share. | ||
Dec. | 31 | Kildaire's net income for 2017 is $1,324,000, and the fair value of its stock at December 31 is $22.00 per share. |
2018
Oct. | 15 | Kildaire declared and paid a cash dividend of $3.70 per share. | ||
Dec. | 31 | Kildaire's net income for 2018 is $1,636,000, and the fair value of its stock at December 31 is $25.00 per share. |
2019
Jan. | 2 |
Selk sold all of its investment in Kildaire for $1,500,000 cash. |
Part 1
Assume that Selk has a significant influence over Kildaire with its
30% share of stock.
Required:
1. Prepare journal entries to record these
transactions and events for Selk. (If no entry is required
for a transaction/event, select "No journal entry required" in the
first account field.)
Selk purchased 80,000 shares (30% of total) of Kildaire's common stock for $1,200,000.
Note: Enter debits before credits.
|
Kildaire declared and paid a cash dividend of $4.80 per share.
Note: Enter debits before credits.
|
Kildaire's net income for 2017 is $1,324,000, and the fair value of its stock at December 31 is $22.00 per share.
Note: Enter debits before credits.
Kildaire declared and paid a cash dividend of $3.70 per share. Note: Enter debits before credits.
|