On January 1, 2017, Walker Company pays $10 million for 40% of the voting stock of a supplier, Dorglass, Inc. On December 1, 2017, Dorglass declared and paid cash dividends of $100,000. For the year ending December 31, 2017, Dorglass also reported net income of $1,000,000. At December 31, 2017, the fair value of 40% of Dorglass's stock was $9 million. On January 1, 2018, all the Dorglass stock was sold for $9 million.
Required:
Prepare journal entries on the following dates:
1. January 1, 2017
2. December 1, 2017
3. December 31, 2017
4. January 1, 2018
Explanations are not required.

Question

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The Answer of On January 1, 2017, Walker Company pays $10 million for 40% of the voting stock of a supplier, Dorglass, Inc. On December 1, 2017, Dorglass declared and paid cash dividends of $100,000. For the year ending December 31, 2017, Dorglass also reported net income of $1,000,000. At December 31, 2017, the fair value of 40% of Dorglass's stock was $9 million. On January 1, 2018, all the Dorglass stock was sold for $9 million.
Required:
Prepare journal entries on the following dates:
1. January 1, 2017
2. December 1, 2017
3. December 31, 2017
4. January 1, 2018
Explanations are not required.

On January 1, 2017, Walker Company Pays $10 Million for 40