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 50,000 shares (20% of total) of Kildaire's common stock for $1,500,000. Oct. 23 Kildaire declared and paid a cash dividend of $2.40 per share. Dec. 31 Kildaire's net income for the year is $1,112,000 and the fair value of its stock at December 31 is $34 per share. Year 2 Oct. 15 Kildaire declared and paid a cash dividend of $3.30 per share. Dec. 31 Kildaire's net income for the year is $1,166,000 and the fair value of its stock at December 31 is $37 per share. Year 3 Jan. 2 Selk sold 2% (equal to 1,000 shares) of its investment in Kildaire for $68,000 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: 1. Prepare journal entries to record the preceding transactions and events for Selk. Journal entry worksheet Selk sold 2%(equal to 1,000 shares) of its investment in Kildaire for $68,000 cash. Note: Enter debits before credits. Date General Journal Debit | Credit 68,000 Jan 02 Cash Gain on sale of stock investments T Record entry Clear entry View general journal 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 50,000 shares (20% of total) of Kildaire's common stock for $1,500,000. Oct. 23 Kildaire declared and paid a cash dividend of $2.40 per share. Dec. 31 Kildaire's net income for the year is $1,112,000 and the fair value of its stock at December 31 is $34 per share. Year 2 Oct. 15 Kildaire declared and paid a cash dividend of $3.30 per share. Dec. 31 Kildaire's net income for the year is $1,166,000 and the fair value of its stock at December 31 is $37 per share. Year 3 Jan. 2 Selk sold 2% (equal to 1,000 shares) of its investment in Kildaire for $68,000 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: 1. Prepare journal entries to record the preceding transactions and events for Selk. Journal entry worksheet Selk sold 2%(equal to 1,000 shares) of its investment in Kildaire for $68,000 cash. Note: Enter debits before credits. Date General Journal Debit | Credit 68,000 Jan 02 Cash Gain on sale of stock investments T Record entry Clear entry View general journal