12-5,12-6) Saved Required information Exercise 12-16 (Algo) Equity investments; fair value through net income (LO12-5) (The following information applies to the questions displayed below.) On January 2, 2021, Sanborn Tobacco Inc. bought 5% of Jackson Industry's capital stock for $98 million, Jackson Industry's net income for the year ended December 31, 2021, was $128 million. The fair value of the shares held by Sanbom was $114 million at December 31, 2021. During 2021. Jackson declared a dividend of $68 million Exercise 12-16 (Algo) Part 1 Required: 1. Prepare all appropriate journal entries related to the investment during 2021. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) View transaction line Journal entry worksheet Exercise 12-16 (Algo) Part 1 Required: 1. Prepare all appropriate Journal entries related to the investment during 2021. (If no entry is required "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 de should be entered as 5.5).) View transaction list Journal entry worksheet Record the purchase of Jackson Industry capital stock for $98 million Note: Enter debits before credits Transaction Debit Credit General Journal Investment in equity Securities Cash O Required information Exercise 12-16 (Algo) Equity investments; fair value through net income (L012-5) The following information applies to the questions displayed below) On January 2, 2021. Sanborn Tobacco Inc, bought 5% of Jackson Industry's capital stock for $98 million Jackson Industry's net income for the year ended December 31, 2021, was $128 million. The fair value of the shares held by Sanborn was $114 million at December 31, 2021. During 2021. Jackson declared a dividend of $68 million Exercise 12-16 (Algo) Part 2 2. Assume that Sanborn sold the stock on January 2, 2022 for $126 million. Prepare the journal entries Sanborn would use to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (ie, 5,500,000 should be entered os 5.5)) View transaction is Journal entry worksheet Exercise 12-16 (Algo) Part 2 2. Assume that Sanborn sold the stock on January 2, 2022 for $126 million. Prepare the journal entries Sanborn would use to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet 1 2 Record the entry to adjust to fair value on the date of sale, Nothinter debits netore credits Transaction General Journal Debit Credit
