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 60,000 shares (20% of total) of Kildaire's common stock for $1,560,000. October 23 Kildaire declared and paid a cash dividend of $3.20 per share. December 31 Kildaire's net income for the year is $1,164,000, and the fair value of its stock at December 31 is $30.00 per share. Year 2 October 15 Kildaire declared and paid a cash dividend of $2.60 per share. December 31 Kildaire's net income for the year is $1,476,000, and the fair value of its stock at December 31 is $32.00 per share. Year 3 January 2 Selk sold 3% (equal to 1,800 shares) of its investment in Kildaire for $54,200 cash.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Required:
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
Prepare journal entries to record the preceding transactions and events for Selk.
View transaction list
1
Journal entry worksheet
Year 3
2 3
Date
January 05
Selk purchased 60,000 shares (20% of total) of Kildaire's common stock for
$1,560,000.
Note: Enter debits before credits.
General Journal
Debit
Credit
Transcribed Image Text:Required: 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 Prepare journal entries to record the preceding transactions and events for Selk. View transaction list 1 Journal entry worksheet Year 3 2 3 Date January 05 Selk purchased 60,000 shares (20% of total) of Kildaire's common stock for $1,560,000. Note: Enter debits before credits. General Journal Debit Credit
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 60,000 shares (20% of total) of Kildaire's common stock for $1,560,000.
October 23 Kildaire declared and paid a cash dividend of $3.20 per share.
December 31 Kildaire's net income for the year is $1,164,000, and the fair value of its stock at December 31 is $30.00
per share.
Year 2
October 15 Kildaire declared and paid a cash dividend of $2.60 per share.
December 31 Kildaire's net income for the year is $1,476,000, and the fair value of its stock at December 31 is $32.00
per share.
Year 3
January 2 Selk sold 3% (equal to 1,800 shares) of its investment in Kildaire for $54,200 cash.
Transcribed Image Text: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 60,000 shares (20% of total) of Kildaire's common stock for $1,560,000. October 23 Kildaire declared and paid a cash dividend of $3.20 per share. December 31 Kildaire's net income for the year is $1,164,000, and the fair value of its stock at December 31 is $30.00 per share. Year 2 October 15 Kildaire declared and paid a cash dividend of $2.60 per share. December 31 Kildaire's net income for the year is $1,476,000, and the fair value of its stock at December 31 is $32.00 per share. Year 3 January 2 Selk sold 3% (equal to 1,800 shares) of its investment in Kildaire for $54,200 cash.
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