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Listed below are a few events and transactions of Kodax Company. 2017 Jan. 2 Purchased 27,000...

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


2017

Jan. 2 Purchased 27,000 shares of Grecco Co. common stock for $427,000 cash plus a broker’s fee of $4,900 cash. Grecco has 100,000 shares of common stock outstanding, and its policies will be significantly influenced by Kodax.
Sept. 1 Grecco declared and paid a cash dividend of $3.40 per share.
Dec. 31 Grecco announced that net income for the year is $515,400.


2018

June 1 Grecco declared and paid a cash dividend of $4.00 per share.
Dec. 31 Grecco announced that net income for the year is $747,900.
Dec. 31 Kodax sold 14,000 shares of Grecco for $415,000 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.)
  

1-Purchased 27,000 shares of Grecco Co. common stock for $427,000 cash plus a broker’s fee of $4,900 cash. Grecco has 100,000 shares of common stock outstanding, and its policies will be significantly influenced by Kodax.

2-Grecco declared and paid a cash dividend of $3.40 per share.

3-Grecco announced that net income for the year is $515,400.

4-Grecco declared and paid a cash dividend of $4.00 per share.

5-Grecco announced that net income for the year is $747,900.

6-Kodax sold 14,000 shares of Grecco for $415,000 cash.

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Answer #1
2017
Jan-02 Equity investment (427000+4900) 431900
Cash 431900
Sep-01 Cash (27000*3.4) 91800
Equity investment 91800
Dec-31 Equity investment (515400*27000/427000) 32590
Investment income 32590
2018
Jun-01 Cash (27000*4) 108000
Equity investment 108000
Dec-31 Equity investment (415000*27000/427000) 26241
Investment income 26241
Dec-31 Cash 415000
Gain on sale of equity investment 264147
Equity invesment (290931*14000/27000) 150853
Total equity investment:
Initial investment 431900
Cash dividend - 2017 -91800
NI share of 2017 32590
Cash dividend - 2018 -108000
Ni share of 2018 26241
Equity investment before sale 290931
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