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 $50,000$ shares $(20\%$ of total$)$ of Kildaire's common stock for $$1,700,000.$

October $23$ Kildaire declared and paid a cash dividend of $$2\mathrm{.}40$ per share.

December $31$ Kildaire's net income for the year is $$1,179,000,$ and the fair value of its stock at December $31$ is $$40$ per share.

Year $2$

October $15$ Kildaire declared and paid a cash dividend of $$2\mathrm{.}10$ per share,

December $31$ Kildaire's net income for the year is $$1,176,000,$ and the fair value of its stock at December $31$ is $$42$ per share.

Year $3$

January $2$ Selk sold $3\%($equal to $1,500$ shares$)$ of its investment in Kildaire for $$65,300$ cash.

Required:

Prepare journal entries to record these transactions and events for Selk. Assume that Selk has a significant influence over Kildaire with its $20\%$ share of stock.

Complete this question by entering your answers in the tabs below.

Complete this question by entering your answers in the tabs below.

Prepare journal entries to record these transactions and events for Selk.

Complete this question by entering your answers in the tabs below.

Year $1$

Year $2$

Prepare journal entries to record these transactions and events for Selk.

Journal entry worksheet

$1$

Selk sold $3\%($equal to $1,500$ shares$)$ of its investment in Kildaire for $$65,300$ cash.

Note: Enter debits before credits.

Date

General Journal

Debit

Credit