Year 1 January 5 Selk purchased 50,000 shares (20% of total) of Kildaire's common stock for...

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Year 1 January 5 Selk purchased 50,000 shares (20% of total) of Kildaire's common stock for $1,500,000. October 23 Kildaire declared and paid a cash dividend of $2.40 per share. December 31 Kildaire's net income for the year is $1,112,000, and the fair value of its stock at December 31 is $34 per share. Year 2 October 15 Kildaire declared and paid a cash dividend of $3.30 per share. December 31 Kildaire's net income for the year is $1,166,000, and the fair value of its stock at December 31 is $37 per share. Year 3 January 2 Selk sold 2% (equal to 1,000 shares) of its investment in Kildaire for $68,000 cash. Problem 15-6A (Algo) Accounting for long-term investments in stock without significant influence LO P4 Assume that although Selk owns 20% of Kildaire's outstanding stock, circumstances Indicate that it does not have a significant Influence over the Investee. Required: Prepare journal entries to record the preceding transactions and events for Selk. Answer is not complete. Complete this question by entering your answers in the tabs below. Year 1 Year 2 Year 3 Prepare journal entries to record the preceding transactions and events for Selk. No 1 Date October 15 Cash Dividend revenue General Journal 2 December 31 Fair value adjustment - Stock Unrealized gain - Income < Year 1 Year 3 > Debit 165,000 Credit 165,000 233,200 233,200 Year 1 January 5 Selk purchased 50,000 shares (20% of total) of Kildaire's common stock for $1,500,000. October 23 Kildaire declared and paid a cash dividend of $2.40 per share. December 31 Kildaire's net income for the year is $1,112,000, and the fair value of its stock at December 31 is $34 per share. Year 2 October 15 Kildaire declared and paid a cash dividend of $3.30 per share. December 31 Kildaire's net income for the year is $1,166,000, and the fair value of its stock at December 31 is $37 per share. Year 3 January 2 Selk sold 2% (equal to 1,000 shares) of its investment in Kildaire for $68,000 cash. Problem 15-6A (Algo) Accounting for long-term investments in stock without significant influence LO P4 Assume that although Selk owns 20% of Kildaire's outstanding stock, circumstances Indicate that it does not have a significant Influence over the Investee. Required: Prepare journal entries to record the preceding transactions and events for Selk. Answer is not complete. Complete this question by entering your answers in the tabs below. Year 1 Year 2 Year 3 Prepare journal entries to record the preceding transactions and events for Selk. No 1 Date October 15 Cash Dividend revenue General Journal 2 December 31 Fair value adjustment - Stock Unrealized gain - Income < Year 1 Year 3 > Debit 165,000 Credit 165,000 233,200 233,200

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Year 1 1 January 5 Investment in Kildaires Common Stock 1500000 Cash 1500000 To record the purchase ... View the full answer