xercise 15-14 (Algo) Accounting for equity method investments LO P5

Listed below are a few events and transactions of Kodax Company.

Year 1

January 2	Purchased 77,000 shares of Grecco Company common stock for $556,000 cash. Grecco has 308,000 shares of common stock outstanding, and its activities will be significantly influenced by Kodax.
September 1	Grecco declared and paid a cash dividend of $1.20 per share.
December 31	Grecco announced that net income for the year is $512,400.

Year 2

June 1	Grecco declared and paid a cash dividend of $3.80 per share.
December 31	Grecco announced that net income for the year is $742,900.
December 31	Kodax sold 12,000 shares of Grecco for $101,000 cash.

Prepare journal entries to record the above transactions and events of Kodax Company.

Note: Do not round intermediate calculations and round your final answers to the nearest dollar amount.