Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Selk Steel Co., which began operations in Year 1, had the following transactions and events in its long-term investments. Year 1 Jan. 5 Selk purchased

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Selk Steel Co., which began operations in Year 1, had the following transactions and events in its long-term investments. Year 1 Jan. 5 Selk purchased 78,080 shares (20% of total) of Kildatre's common stock for $2,800,000. Oct. 23 Kildaire declared and paid a cash dividend of $3.20 per share. Dec. 31 Kildaire's net income for the year is $1,132,000 and the fair value of its stock at December 31 is 547 per share. Year 2 Oct. 15 Kildaire declared and paid a cash dividend of $2.30 per share. Dec. 31 Kildaire's net income for the year is $1,126,800 and the fair value of its stock at December 31 is $50 per share. Year 3 Jan. 2 Selk sold 3% (equal to 2,100 shares) of its investment in Kildaire for $88,200 cash. Required: 1. 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 70,000 shares (20% of total) of Kildaire's common stock for $2,800,000 totes Enter debits before credits General Journal Debit Credit Date Jan 05 Record entry Clear entry View generala Year 2 > Year 1 Year 2 Year 3 Prepare journal entries to record the preceding transactions and events for Selk. View transaction list Journal entry worksheet Kildaire declared and paid a cash dividend of $2.30 per share. Notel Enter debits before credits. General Journal Debit Credit Date Oct 15 Record entry Clear entry View general journal Required: 1. 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. ces View transaction list Journal entry worksheet Selk sold 3%(equal to 2,100 shares) of its investment in Kildaire for $88,200 cash. Noter Enter debits before credits General Journal Debit Credit Date Jan 02 Record entry Clear entry View general journal

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

Students also viewed these Accounting questions

Question

To motivate your listeners, appeal to their basic needs.

Answered: 1 week ago