On March 31, 2021, Chow Brothers, Inc., bought 8% of KT Manufacturing's capital stock for $50.6 million KT's net income for the year ended December 31, 2021, was $80.2 million. The fair value of the shares held by Chow was $35.4 million at December 31, 2021 KT did not declare or pay a dividend during 2021. Required: 1. Prepare all appropriate journal entries related to the investment during 2021. 2. Assume that Chow sold the stock on January 20, 2022 for $30.2 million. Prepare the journal entries to record the sale, Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare all appropriate journal entries related to the investment during 2021. (If no entry is required for a transaction/event, select "No joumal 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 2 3 Record the purchase of KT Manufacturing's capital stock for $50,6 million. 1 K Noter Enter debits before credits Dato General Journal Debit Credit On March 31, 2021. Chow Brothers, Inc., bought 8% of KT Manufacturing's capital stock for $50.6 million. KT's net income for the year ended December 31, 2021, was $80.2 million. The fair value of the shares held by Chow was $35.4 million at December 31, 2021. KT did not declare or pay a dividend during 2021. Required: 1. Prepare all appropriate journal entries related to the investment during 2021. 2. Assume that Chow sold the stock on January 20, 2022, for $30.2 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 (.e., 5,500,000 should be entered as 5.5).). View transaction list Journal entry worksheet 3 Record the entry for KT's net income Note: Enter debits before credits Date General Journal Dobit Credit On March 31, 2021, Chow Brothers, Inc., bought 8% of KT Manufacturing's capital stock for $50.6 million. KT's net income for the year ended December 31, 2021, was $80.2 million. The fair value of the shares held by Chow was $35.4 million at December 31, 2021 KT did not declare or pay a dividend during 2021. Required: 1. Prepare all appropriate journal entries related to the investment during 2021. 2. Assume that Chow sold the stock on January 20, 2022, for $30.2 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 (.e., 5,500,000 should be entered as 5,5).) View transaction list Journal entry worksheet 2 > Record the fair value adjustment. Note: Enter debits before credits Date General Journal Debit Credit On March 31, 2021, Chow Brothers, Inc., bought 8% of KT Manufacturing's capital stock for $50.6 million, KT's net Income for the year ended December 31, 2021, was $80.2 million. The fair value of the shares held by Chow was $35.4 million at December 31, 2021. KT did not declare or pay a dividend during 2021. Required: 1. Prepare all appropriate journal entries related to the investment during 2021. 2. Assume that Chow sold the stock on January 20, 2022 for $30.2 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that Chow sold the stock on January 20, 2022, for $30.2 million. Prepare the journal entries 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 (i.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry werksheet
