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 9 months 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...
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Jester Company began operations on January 1, 2018. The company
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in exchange for 20,000 shares of common stock. • February 2: Jester
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Jester Company began operations on January 1, 2018. The company
had the following transactions in its first year of business:
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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
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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
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Owner invested $120,000 cash and a truck worth $36,000 in
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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
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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
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Clothing Frontiers began operations on January 1 and engages in the following transactions during the year...
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January 1 Issues 700 shares of common stock for $44 per share.
April 1 Issues 110 additional shares of common stock for $48 per
share.
Required:
1. Record the transactions, assuming Clothing
Frontiers has no-par common stock.
2. Record the transactions, assuming Clothing
Frontiers has either $1 par value or $1 stated value common
stock.
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