Prepare journal entries to record the following transactions and events of Kodax Company 2017 Jan 2 Purchased 30,000 shares of Grecco Co common stock for $408,000 cash plus a broker 's fee of $3,000 cash Grecco has 90,000 shares of common stock outstanding, and its policies will be significantly in...

2017 Jan 2 LongTerm Investments Grecco 411000 Cash 411000 Record purchase of investment 408000 3000 ...

Prepare journal entries to record the following transactions and events of Kodax Company. 2017 Jan. 2 Purchased

Question:

Prepare journal entries to record the following transactions and events of Kodax Company.
2017
Jan. 2 Purchased 30,000 shares of Grecco Co. for $408,000 cash plus a broker's fee of $3,000 cash. Grecco has 90,000 shares of outstanding, and its policies will be significantly influenced by Kodax.
Sep. 1 Grecco declared and paid a cash of $1.50 per share.
Dec. 31 Grecco announced that net income for the year is $486,900.
2018
June 1 Grecco declared and paid a cash 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...