On January 2, 2018, Sanborn Tobacco Inc. bought 5% of Jackson Industry's capital stock for $106 million. Jackson Industry's net income for the year ended December 31, 2018, was $136 million. The fair value of the shares held by Sanborn was $130 million at December 31, 2018. During 2018, Jackson declared a dividend of $76 million. Required: 1. Prepare all appropriate journal entries related to the investment during 2018 2. Assume that Sanborn sold the stock on January 2, 2019 for $142 million. Prepare the journal entries Sanborn would use to record the sale. Complete this question by entering your answers in the tabs below. Prepare all appropriate journal entries related to the investment during 2018. (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 list Journal entry worksheet 2 4 Record the purchase of Jackson Industry capital stock for $106 Note: Enter debits before credits. Event General Journal Debit Credit Prepare all appropriate journal entries related to the investment during 2018. (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 list Journal entry worksheet 2 4 Record Sanborn Tobacco's portion of Jackson Industry's net income of $136 million. Note: Enter debits before credits. Event General Journal Debit Credit 2 Prepare all appropriate journal entries related to the investment during 2018. (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 list Journal entry worksheet 4 Record the dividend revenue. Note: Enter debits before credits. Event General Journal Debit Credit Prepare all appropriate journal entries related to the investment during 2018. (If no entry is required for a transaction/eve 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 list Journal entry worksheet 2 4 Record the fair value adjustment. Note: Enter debits before credits. Event General Journal Debit Credit 4 Journal entry worksheet 2 Record the entry to adjust to fair value on the date of sale Note: Enter debits before credits. Event General Journal Debit Credit 2 2 Record the sale of stock on January 2, 2019 for $142 million. Note: Enter debits before credits. Event General Journal Debit Credit 1
