## Events and Transactions of Kodax Company### Year 1- **January 2**: Kodax Company purchased 40,000 shares of Grecco Company common stock for $431,000 cash. Grecco has 120,000 shares of common stock outstanding, and its activities will be significantly influenced by Kodax.- **September 1**: Grecco declared and paid a cash dividend of $1.70 per share.- **December 31**: Grecco announced that net income for the year is $489,900.### Year 2- **June 1**: Grecco declared and paid a cash dividend of $1.70 per share.- **December 31**: Grecco announced that net income for the year is $705,400.- **December 31**: Kodax sold 9,000 shares of Grecco for $160,000 cash.Prepare journal entries to record the above transactions and events of Kodax Company. **(Do not round intermediate calculations and round your final answers to the nearest dollar amount.)**---### Journal Entry Example#### September 1, Year 1**Transaction**: Grecco declared and paid a cash dividend of $1.70 per share.**Journal Entry**:| Date | General Journal | Debit | Credit ||----------------------|-----------------------|---------|---------|| September 1, Year 1 | Cash | 68,000 | || | Dividend revenue | | 68,000 |*Note: Enter debits before credits.*This example illustrates the recording of a cash dividend transaction for Kodax Company. The dividend revenue is recorded based on the number of shares held, multiplied by the dividend per share.

journal is the primary book of entry

Answered: Listed below are a few events and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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i.3
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