LO P3, P4 IThe following information applies to the questions displayed below. Selk Steel Co., which began operations on January 4, 2017, had the following subsequent transactions and events in its long-term investments. 2017 Jan. 5 Selk purchased 60,000 shares (20% of total) of Kildare's common stock for $1,568, eee. Oct. 23 Kildare declared and paid a cash dividend of $3.20 per share. Dec. 31 Kildaire's net income for 2017 is $1,164,000, and the fair value of its stock at December 31 is $30.00 per share 2018 Oct. 15 Kildaire declared and paid a cash dividend of $2.60 per share. Dec. 31 Kildaire's net income for 2018 is $1,476,000, and the fair value of its stock at December 31 is $32.00 per share 2019 Jan. 2 Selk sold all of its investment in Kildaire for $1,894,000 cash. Problem 15-4A Part 2 Part 2 Assume that although Selk owns 20% of Kildare's outstanding stock, circumstances indicate that it does not have a significant influence over the investee and that it is classified as an available-for-sale security investment. Required 1. Prepare journal entries to record the preceding transactions and events for Selk. Also prepare an entry dated January 2, 2019, to remove any balance related to the fair value adjustment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is complete but not entirely correct Complete this question by entering your answers in the tabs below. 2017 2018 2019 Prepare journal entries to record the preceding transactions and events for Selk. Also prepare an entry dated January 2, 2019, to remove any balance related to the fair value adjustment. Date General Journal Debit Credit Jan 05, 2017 Long-term investments-AFS (Kildaire) 1,560,000 Cash 1,560,000 Oct 23, 2017 Cash 192,000 Long-term investments-AFS (Kildaire) 192,000 Dec 31, 2017 Long-term investments-AFS (Kildaire) Earnings from long-term investment 232,800 232,800 2017 2018 > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 2017 2018 2019 Prepare journal entries to record the preceding transactions and events for Selk. Also prepare an entry dated January 2, 2019, to remove any balance related to the fair value adjustment. No Date General Journal Debit Credit Oct 15, 2018 Cash 156,000 Long-term investments-AFS (Kildaire) 156,000 2 232,800 Dec 31, 2018 Long-term investments-AFS (Kildaire) Earnings from long-term investment 232,800 K 2017 2019 > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below 2017 2018 2019 Prepare journal entries to record the preceding transactions and events for Selk. Also prepare an entry dated January 2, 2019, to remove any balance related to the fair value adjustment. Date General Journal Debit Credit Jan 02, 2019 Cash 1.894.000 154,000 1,740,000 Gain on sale of Investments Long-term investments-AFS (Kildaire) Jan 02, 2019 Unrealized gain-Equity 360,000 Fair value adjustment-AFS (LT) 360,000 2018 2019> 2. Compute the cost per share of Selk's investment in Kildaire common stock as reflected in the investment account on January 1, 2019 Investment cost per share 3. Compute the net increase or decrease in Selk's equity from January 5, 2017, through January 2, 2019, resulting from its investment in Kildaire. The in Selk's equity is LO P3, P4 IThe following information applies to the questions displayed below. Selk Steel Co., which began operations on January 4, 2017, had the following subsequent transactions and events in its long-term investments. 2017 Jan. 5 Selk purchased 60,000 shares (20% of total) of Kildare's common stock for $1,568, eee. Oct. 23 Kildare declared and paid a cash dividend of $3.20 per share. Dec. 31 Kildaire's net income for 2017 is $1,164,000, and the fair value of its stock at December 31 is $30.00 per share 2018 Oct. 15 Kildaire declared and paid a cash dividend of $2.60 per share. Dec. 31 Kildaire's net income for 2018 is $1,476,000, and the fair value of its stock at December 31 is $32.00 per share 2019 Jan. 2 Selk sold all of its investment in Kildaire for $1,894,000 cash. Problem 15-4A Part 2 Part 2 Assume that although Selk owns 20% of Kildare's outstanding stock, circumstances indicate that it does not have a significant influence over the investee and that it is classified as an available-for-sale security investment. Required 1. Prepare journal entries to record the preceding transactions and events for Selk. Also prepare an entry dated January 2, 2019, to remove any balance related to the fair value adjustment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is complete but not entirely correct Complete this question by entering your answers in the tabs below. 2017 2018 2019 Prepare journal entries to record the preceding transactions and events for Selk. Also prepare an entry dated January 2, 2019, to remove any balance related to the fair value adjustment. Date General Journal Debit Credit Jan 05, 2017 Long-term investments-AFS (Kildaire) 1,560,000 Cash 1,560,000 Oct 23, 2017 Cash 192,000 Long-term investments-AFS (Kildaire) 192,000 Dec 31, 2017 Long-term investments-AFS (Kildaire) Earnings from long-term investment 232,800 232,800 2017 2018 > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 2017 2018 2019 Prepare journal entries to record the preceding transactions and events for Selk. Also prepare an entry dated January 2, 2019, to remove any balance related to the fair value adjustment. No Date General Journal Debit Credit Oct 15, 2018 Cash 156,000 Long-term investments-AFS (Kildaire) 156,000 2 232,800 Dec 31, 2018 Long-term investments-AFS (Kildaire) Earnings from long-term investment 232,800 K 2017 2019 > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below 2017 2018 2019 Prepare journal entries to record the preceding transactions and events for Selk. Also prepare an entry dated January 2, 2019, to remove any balance related to the fair value adjustment. Date General Journal Debit Credit Jan 02, 2019 Cash 1.894.000 154,000 1,740,000 Gain on sale of Investments Long-term investments-AFS (Kildaire) Jan 02, 2019 Unrealized gain-Equity 360,000 Fair value adjustment-AFS (LT) 360,000 2018 2019> 2. Compute the cost per share of Selk's investment in Kildaire common stock as reflected in the investment account on January 1, 2019 Investment cost per share 3. Compute the net increase or decrease in Selk's equity from January 5, 2017, through January 2, 2019, resulting from its investment in Kildaire. The in Selk's equity is