Year 1 January 2 Purchased 75,000 shares of Grecco Company common stock for $531,000 cash. Grecco has 300,000 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 $504,900. Year 2 June 1 Grecco declared and paid a cash dividend of $3.40 per share. December 31 Grecco announced that net income for the year is $730,400. December 31 Kodax sold 9,000 shares of Grecco for $131,000 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.

Year 1 January 2 Purchased 75,000 shares of Grecco Company common stock for $531,000 cash. Grecco has 300,000 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 $504,900. Year 2 June 1 Grecco declared and paid a cash dividend of $3.40 per share. December 31 Grecco announced that net income for the year is $730,400. December 31 Kodax sold 9,000 shares of Grecco for $131,000 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.

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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For Year 1, prepare any journal and adjusting entries related to the investment in Band Inc.
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