Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

! Required information [The following information applies to the questions displayed below.] Selk Steel Company, which began operations in Year 1, had the following

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

! Required information [The following information applies to the questions displayed below.] Selk Steel Company, which began operations in Year 1, had the following transactions and events in its long-term investments. Year 1 January 5 Selk purchased 60,000 shares (20% of total) of Kildaire's common stock for $1,560,000. October 23 Kildaire declared and paid a cash dividend of $3.20 per share. December 31 Kildaire's net income for the year is $1,164,000, and the fair value of its stock at December 31 is $30.00 per share. Year 2 October 15 Kildaire declared and paid a cash dividend of $2.60 per share. December 31 Kildaire's net income for the year is $1,476,000, and the fair value of its stock at December 31 is $32.00 per share. Year 3 January 2 Selk sold 3% (equal to 1,800 shares) of its investment in Kildaire for $54,200 cash. Assume that although Selk owns 20% of Kildaire's outstanding stock, circumstances indicate that it does not have a significant influence over the investee. Required: Prepare journal entries to record the preceding transactions and events for Selk. Complete this question by entering your answers in the tabs below. Year 1 Year 2 Year 3 Prepare journal entries to record the preceding transactions and events for Selk. View transaction list Journal entry worksheet 1 2 3 Selk purchased 60,000 shares (20% of total) of Kildaire's common stock for $1,560,000. Note: Enter debits before credits. Date January 05 General Journal Debit Credit > Journal entry worksheet < 1 2 3 Kildaire declared and paid a cash dividend of $3.20 per share. Note: Enter debits before credits. Date October 23 General Journal Debit Credit Journal entry worksheet 1 2 3 Kildaire's net income for the year is $1,164,000, and the fair value of its stock at December 31 is $30.00 per share. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Journal entry worksheet < 1 2 Kildaire declared and paid a cash dividend of $2.60 per share. Note: Enter debits before credits. Date October 15 General Journal Debit Credit worksheet 1 2 Kildaire's net income for the year is $1,476,000, and the fair value of its stock at December 31 is $32.00 per share. Note: Enter debits before credits. Date December 31 General Journal Debit Credit worksheet 1 Selk sold 3% (equal to 1,800 shares) of its investment in Kildaire for $54,200 cash. Note: Enter debits before credits. Date January 02 General Journal Debit Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting principles and analysis

Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso

2nd Edition

471737933, 978-0471737933

More Books

Students also viewed these Accounting questions

Question

What questions do you have for us?

Answered: 1 week ago

Question

Difference between truncate & delete

Answered: 1 week ago