Pillar Steel Co., which began operations on January 4, 2011, had the following subsequent transactions and events in its long-term investments. 2011 Jan. 5 Pillar purchased 61,000 shares of Kildaire's common stock for $1,944,275. Oct. 23 Kildaire declared and paid a cash dividend of $3.30 per share. Dec. 31 Kildaire's net income for 2011 is $1,165,000, and the fair value of its stock at December 31 is $36.00 per share. 2012 Oct. 15 Kildaire declared and paid a cash dividend of $2.70 per share. Dec. 31 Kildaire's net income for 2012 is $1,476,700, and the fair value of its stock at December 31 is $39.00 per share. 2013 Jan. 2 Pillar sold all of its investment in Kildaire for $2,153,100 cash. Part 1 Assume that Pillar has a significant influence over Kildaire with its 25% share of stock.
Required:
1. Prepare journal entries to record these transactions and events for Pillar.Date General Journal Debit Credit Jan. 5, 2011 Oct. 23, 2011 Dec. 31, 2011 Oct. 15, 2012 Dec. 31, 2012 Jan. 2, 2013 Compute the carrying value per share of Pillar's investment in Kildaire common stock as reflected in the investment account on January 1, 2013. 2. Carrying value per share $ ????? 3. Compute the net increase or decrease in Pillar's equity from January 5, 2011, through January 2, 2013, resulting from its investment in Kildaire?