Question
In: Accounting
Selk Steel Co., which began operations on January 4, 2017, had the following subsequent transactions and...
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.
|
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Selk Steel Co., which began operations on January 4, 2017, had the following subsequent transactions and...
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...
Selk Steel Co., which began operations on January 4, 2017, had the following subsequent transactions and...
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
60,000 shares (20% of total) of Kildaire's common stock for
$1,560,000.
Oct.
23
Kildaire declared
and paid a cash dividend of $3.20 per share.
Dec.
31
Kildaire’s net
income for 2017 is $1,164,000, and the fair value of its stock at
December 31 is $30.00 per share.
2018
Oct.
15
Kildaire declared
and...
Selk Steel Co., which began operations in Year 1, had the following transactions and events in...
Selk Steel Co., which began operations in Year 1, had the following
transactions and events in its long-term investments.
Year 1
Jan.
5
Selk purchased 60,000 shares (20% of total) of Kildaire's
common stock for $1,320,000.
Oct.
23
Kildaire declared and paid a cash dividend of $2.20 per
share.
Dec.
31
Kildaire’s net income for the year is $1,164,000 and the fair
value of its stock at December 31 is $30 per share.
Year 2
Oct.
15
Kildaire declared and...
CP 7–4 Koss Co. Ltd. began operations on January 1, 2018. It had the following transactions...
CP 7–4
Koss Co. Ltd. began operations on January 1, 2018. It had the
following
transactions during 2018, 2020, and 2021.
2018 Dec. 31 Estimated uncollectible accounts as $5,000
(calculated
as 2% of sales)
2020 Apr. 15 Wrote off the balance of N. Lang, $700
Aug. 8 Wrote off $3,000 of miscellaneous customer accounts
as uncollectible
Dec. 31 Estimated uncollectible accounts as $4,000 (1½% of
sales)
2021 Mar. 6 Recovered $200 from N. Lang, whose account was
written off in...
Jester Company began operations on January 1, 2018. The company had the following transactions in its...
Jester Company began operations on January 1, 2018. The company
had the following transactions in its first year of business: •
January 4: Owners invested $120,000 (the par value of the stock)
in exchange for 20,000 shares of common stock. • February 2: Jester
took out a 10-year note payable in the amount of $80,000 to pay for
operating expenses. • Interest payments are due every six months,
and the balance of the note will be paid off in a...
Jester Company began operations on January 1, 2018. The company had the following transactions in its...
Jester Company began operations on January 1, 2018. The company
had the following transactions in its first year of business:
January 4: Owners invested $120,000 (the par value of the
stock) in exchange for 20,000 shares of common stock.
February 2: Jester took out a 10-year note payable in the
amount of $80,000 to pay for operating expenses.
Interest payments are due every six months, and the balance of
the note will be paid off in a lump-sum in 10...
Walter's Inc. began operations on January 15, 2018, and had the following transactions in trading securities...
Walter's Inc. began operations on January 15, 2018, and had the
following transactions in trading securities during 2018 and
2019:
March 1, 2018 Purchased 500 shares of Apex, Inc. common stock at
$11 per share, plus a commission of $300
April 1, 2018 Purchased 1,000 shares of Basic Corp. preferred
stock at $4 per share, plus a commission of $500.
June 1, 2018 Received dividends of $1 per share on the Apex
stock and $2 per share on the Basic...
Naxion Corporation began operations on January 2, 2018, and had the following transactions during the year:...
Naxion Corporation began operations on January 2, 2018, and had the
following transactions during the year:
Jan. 2
Issued
250,000 shares of $1 par value common stock at $45 per share. Total
shares authorized: 1,000,000.
Feb. 5
Issued
10,000 shares of $50 par, 5% cumulative preferred stock at $65 per
share. Total shares authorized: 25,000.
Mar.
15
Issued 150,000 shares of $1 par value common stock at $35 per
share.
Apr. 2
Declared
a $2.50 per share cash dividend on...
(Steven’s Bikes began operations in April 2017 and had the following transactions. Owner invested $120,000 cash...
(Steven’s Bikes began operations in
April 2017 and had the following transactions.
Owner invested $120,000 cash and a truck worth $36,000 in
exchange for stock.
Paid $84,000 cash for 6 months’ rent.
Purchased $300,000 of bicycle inventory on credit.
Sold bicycles for cash of $507,000. The cost of the bikes sold
was $180,000.
Sold and invoiced bicycles to a client for $95,400. The cost of
the bikes sold was $48,000.
Paid $90,000 cash for an advertising campaign in connection with...
Consider the following 2017 information for your company, which began operations on January 1, 2017. (So...
Consider the following 2017 information for your company, which
began operations on January 1, 2017. (So it did not exist in 2016,
and therefore had no balance sheet.)
- Number of units sold in 2017: 1,000
- Price per unit: $1,000
- Cost of goods sold for each unit: 65% of the price
- Other expenses (except depreciation): $50,000
- On January 1, the company bought $500,000 of fixed assets. You
assume these assets will last 5 years
and have...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Create separate class with these members a, b, c, x, y, z int a b c...
- The Bigbee Bottling Company is contemplating the replacement of one of its bottling machines with a...
- home / study / business / finance / finance questions and answers / rak, inc., has...
- 2. Show the trace of the RTL code for Booth's algorithm for X = 0111 and...
- Write an Java/C program code to perform known-plaintext attack on Permutation Cipher. This program can be...
- what kinds of patterns do you ovserve in the last few days of future contracts? what...
- Write a mini essay on the following: (a) “Culture defines the rules of the game.” (Robbins...
ADVERTISEMENT