Exercise 15-12 Securities transactions; equity method LO P4

Listed below are a few events and transactions of Kodax Company.

2015

Jan. 2 Purchased 26,600 shares of Grecco Co. common stock for $419,000 cash plus a brokers fee of $4,100 cash. Grecco has 76,000 shares of common stock outstanding and its policies will be significantly influenced by Kodax.

Sept. 1 Grecco declared and paid a cash dividend of $2.60 per share.

Dec. 31 Grecco announced that net income for the year is $503,400.

2016

June 1 Grecco declared and paid a cash dividend of $3.20 per share.

Dec. 31 Grecco announced that net income for the year is $727,900.

Dec. 31 Kodax sold 11,000 shares of Grecco for $375,000 cash. Prepare journal entries to record the above transactions and events of Kodax Company.