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y work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 2017 Jan. 2 Purchased 25,800 shares of Grecco Co. common stock for $417,00e cash plus a broker's fee of $3,900 cash. Grecco has 86,000 shares of common stock outstanding, and its policies will be significantly influenced by Kodax. Sept. 1 Grecco declared and paid a cash dividend of $2.40 per share. Dec. 31 Grecco announced that net income for the year is $500,400. 2018 June 1 Grecco declared and paid a cash dividend of $3.00 per share. Dec. 31 Grecco announced that net income for the year is $722,900. Dec. 31 Kodax sold 10,000 shares of Grecco for $365,000 cash.

Explanation / Answer

Journal entry :

Long term investment-Grecco

(648570/25800*10000)

No. Date Accounts & explanation debit credit 6 Dec 31, 2018 Cash 365000

Long term investment-Grecco

(648570/25800*10000)

251384 Gain on sale of investment 113616

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