Prepare journal entries to record the following transactions and events of Kodax Company. 2013 Jan. 2 Purchased

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Prepare journal entries to record the following transactions and events of Kodax Company.
2013
Jan. 2 Purchased 30,000 shares of Grecco Co. common stock for $ 408,000 cash plus a broker’s fee of $ 3,000 cash. Bushtex has 90,000 shares of common stock outstanding and its policies will be significantly influenced by Kodax.
Sept. 1 Grecco declared and paid a cash dividend of $ 1.50 per share.
Dec. 31 Grecco announced that net income for the year is $ 486,900.
2014
June 1 Grecco declared and paid a cash dividend of $ 2.10 per share.
Dec. 31 Grecco announced that net income for the year is $ 702,750.
Dec. 31 Kodax sold 10,000 shares of Grecco for $ 320,000 cash.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Fundamental accounting principle

ISBN: 978-0078025587

21st edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

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