Prepare journal entries to record the following transactions and events of Kodax Company. Year 1 Jan. 2 Purchased 30,000 shares of Grecco Co. common stock for $411,000 cash. Grecco has 90,000 shares of common stock outstanding, and its activities will be significantly influenced by Kodax. Sep. 1 Grecco declared and paid a cash dividend of $1.50 per share. Dec. 31 Grecco announced that net income for the year is $486,900. Year 2 June 1 Grecco declared and paid a cash dividend of $2.10 per share. Dec. 31 Grecco announced that net income for the year is $702,750. Dec. 31 Kodax sold 3,000 shares of Grecco for $71,000 cash.

Question

Prepare journal entries to record the following transactions and events of Kodax Company.
Year 1
Jan. 2 Purchased 30,000 shares of Grecco Co. common stock for $411,000 cash. Grecco has 90,000
shares of common stock outstanding, and its activities will be significantly influenced by Kodax.
Sep. 1 Grecco declared and paid a cash dividend of $1.50 per share.
Dec. 31 Grecco announced that net income for the year is $486,900.
Year 2
June 1 Grecco declared and paid a cash dividend of $2.10 per share.
Dec. 31 Grecco announced that net income for the year is $702,750.
Dec. 31 Kodax sold 3,000 shares of Grecco for $71,000 cash.

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