Response to the following problem:
Prepare journal entries to record the following transactions and events of Kash Company.
2011
Jan. 2 Purchased 30,000 shares of Bushtex Co. common stock for $204,000 cash plus a broker's fee of $3,480 cash. Bush tex has 90,000 shares of common stock outstanding and its policies will be significantly influenced by Kash.
Sept. 1 Bushtex declared and paid a cash dividend of $3.10 per share.
Dec. 31 Bushtex announced that net income for the year is $624,900.
2012
June 1 Bushtex declared and paid a cash dividend of $3.60 per share.
Dec. 31 Bushtex announced that net income for the year is $699,750.
Dec. 31 Kash sold 10,000 shares of Bushtex for $162,500 cash.