Year 1January 5 Selk purchased 50,000 shares (20% of total) of Kildaire's common stock for $1,500,000.Kildaire declared and paid a cash dividend of $2.40 per share.October 23December 31 Kildaire's net income for the year is $1,112, eee, and the fair value of its stock at December 31 is $34 pershare.Year 2No1October 15 Kildaire declared and paid a cash dividend of $3.30 per share.December 31 Kildaire's net income for the year is $1,166,00e, and the fair value of its stock at December 31 is $37 pershare.Problem 15-6A (Algo) Accounting for long-term investments in stock without significant influence LO P4Assume that although Selk owns 20% of Kildaire's outstanding stock, circumstances indicate that it does not have a significantInfluence over the investee.2Year 3Required:Prepare Journal entries to record the preceding transactions and events for Selk.January 2 Selk sold 2 % (equal to 1,000 shares) of its investment in Kildaire for $68,000 cash.Answer is not complete.Complete this question by entering your answers in the tabs below.Year 1Prepare journal entries to record the preceding transactions and events for Selk.Year 2DateOctober 15December 31Year 3CashDividend revenueGeneral JournalFair value adjustment - StockUnrealized gain - Income< Year 1Year 3 >Debit165,000233,200Credit165,000233,200

Whenever there is an investment made by a company and does not have any influence or significant…

Answered: Required: Prepare journal entries to…

Business

Accounting

Required: Prepare journal entries to record the preceding transactions and events for Selk.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 11SPA

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