Exercise $15-14($Algo$)$ Accounting for equity method investments LO P$5$

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

Year $1$

January $2$ Purchased $62,000$ shares of Grecco Company common stock for $$586,000$ cash. Grecco has $186,000$ shares of common stock outstanding, and its activities will be significantly influenced by Kodax.

September $1$ Grecco declared and paid a cash dividend of $$1\mathrm{.}50$ per share.

December $31$ Grecco announced that net income for the year is $$516,900.$

Year $2$

June $1$ Grecco declared and paid a cash dividend of $$1\mathrm{.}60$ per share.

December $31$ Grecco announced that net income for the year is $$750,400.$

December $31$ Kodax sold $12,000$ shares of Grecco for $$170,000$ cash.

Prepare journal entries to record the above transactions and events of Kodax Company.

Note: Do not round intermediate calculations and round your final answers to the nearest dollar amount.

Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

Purchased $62,000$ shares of Grecco Company common stock for $$586,000$ cash. Grecco has $186,000$ shares of common stock outstanding, and its activities will be significantly influenced by Kodax.

Note: Enter debits before Iredits.

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