Required information

Use the following information for the Problems below. (Algo)[The following information applies to the questions displayed below.] Selk Steel Company, which began operations in Year 1, had the following transactions and events in its long-term investments. Year 1

January 5	Selk purchased 70,000 shares (20% of total) of Kildaire's common stock for $2,800,000.
October 23	Kildaire declared and paid a cash dividend of $3.20 per share.
December 31	Kildaires net income for the year is $1,132,000, and the fair value of its stock at December 31 is $47 per share.

Year 2

October 15	Kildaire declared and paid a cash dividend of $2.30 per share.
December 31	Kildaires net income for the year is $1,126,000, and the fair value of its stock at December 31 is $50 per share.

Year 3

January 2	Selk sold 3% (equal to 2,100 shares) of its investment in Kildaire for $88,200 cash.

rev: 12_09_2021_QC_CS-287734

Problem 15-6A (Algo) Accounting for long-term investments in stock without significant influence LO P4

Assume that although Selk owns 20% of Kildaires 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. 1. Selk purchased 70,000 shares (20% of total) of Kildaire's common stock for $2,800,000.

2.Kildaire declared and paid a cash dividend of $3.20 per share.

3.Kildaire's net income for the year is $1,132,000, and the fair value of its stock at December 31 is $47 per share.

Year 2

1. Kildaire declared and paid a cash dividend of $2.30 per share.

2. Kildaire's net income for the year is $1,126,000, and the fair value of its stock at December 31 is $50 per share.

Year 3

1.Selk sold 3%(equal to 2,100 shares) of its investment in Kildaire for $88,200 cash.