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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 $65,000$ shares $(208$ of total$)$ of Kildaire's common stock for $$2,470,000.$

october $23$ kildaire declared and paid a cash dividend of $$3\mathrm{.}70$ per share.

net income for the year is $$1,179,000,$ and the fair value of its stock at December $31$ is $$45$ per share.

Year $2$

October $15$ Kildaire declared and paid a cash dividend of $$2\mathrm{.}70$ per share.

December $31$ kildaire's net income for the year is $$1,159,000,$ and the fair value of its stock at December $31$ is $$48$ per share.

Year $3$

January $2$ Selk sold $28($equal to $1,300$ shares$)$ of its investment in Kildaire for $$66,800$ cash.

Problem $15-5$A $($Algo$)$ Accounting for long$-$term investments in stock with significant influence LO P$5$

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.

Selk purchased $65,000$ shares $(20\%$ of total$)$ of Kildaire's common stock for $$2,470,000.$

Kildaire declared and paid a cash dividend of $$3\mathrm{.}70$ per share.

$1$ Kildaire declared and paid a cash dividend of $$2\mathrm{.}70$ per share.

$2$ Kildaire's net income for the year is $$1,159,000,$ and the fair value of its stock at December $31$ is $$48$ per share.

$(3)$ Kildaire's net income for the year is $$1,179,000,$ and the fair value of its stock at December $31$ is $$45$ per share.

$1$

Selk sold $2\%($equal to $1,300$ shares$)$ of its investment in Kildaire for $$66,800$ cash.

Note: Enter debits before credits.

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