Question
In: Accounting
The following are two independent situations. Situation 1 Windsor Cosmetics acquired 10% of the 215,000 shares...
The following are two independent situations.
Situation 1
Windsor Cosmetics acquired 10% of the 215,000 shares of common
stock of Martinez Fashion at a total cost of $12 per share on March
18, 2017. On June 30, Martinez declared and paid $74,400 cash
dividend to all stockholders. On December 31, Martinez reported net
income of $133,600 for the year. At December 31, the market price
of Martinez Fashion was $13 per share.
Situation 2
Sheridan, Inc. obtained significant influence over Seles
Corporation by buying 30% of Seles’s 28,500 outstanding shares of
common stock at a total cost of $9 per share on January 1, 2017. On
June 15, Seles declared and paid cash dividends of $35,400. On
December 31, Seles reported a net income of $91,800 for the
year.
Prepare all necessary journal entries in 2017 for both
situations.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
The following are two independent situations. Situation 1 Marin Cosmetics acquired 10% of the 212,000 shares...
The following are two independent situations.
Situation 1
Marin Cosmetics acquired 10% of the 212,000 shares of common stock
of Martinez Fashion at a total cost of $13 per share on March 18,
2017. On June 30, Martinez declared and paid $76,400 cash dividend
to all stockholders. On December 31, Martinez reported net income
of $125,800 for the year. At December 31, the market price of
Martinez Fashion was $14 per share.
Situation 2
Headland, Inc. obtained significant influence over...
The following are two independent situations. Situation 1 Whoo Cosmetics acquired 12% of the 200,000 shares...
The following are two independent situations.
Situation 1
Whoo Cosmetics acquired 12% of the
200,000 shares of common stock of Loreal Fashion at a total cost of
$15 per share on Oct. 18, 2018. On Oct. 30, Loreal declared and
paid $60,000 cash dividend to all stockholders. On December 31,
Loreal reported net income of $122,000 for the year. At December
31, the market price of Loreal Fashion was $12 per share.
Situation 2
Peach Republic Group obtained
significant influence...
Two independent situations. Situation 1 Tamarisk Cosmetics acquired 10% of the 184000 shares of common stock...
Two
independent situations.
Situation 1
Tamarisk Cosmetics acquired 10% of the 184000 shares of common
stock of Martinez Fashion at a total cost of $13 per share on March
18, 2017. On June 30, Martinez declared and paid $69400 cash
dividend to all stockholders. On December 31, Martinez reported net
incomr of $113000 for the year. At Decemeber, the market pricr of
Martinez Fashion was $14 per share.
Situation 2
Vaughn Inc. obtained significant influence over Seles
Corporation by buying...
Presented below are two independent situations. 1. Gambino Cosmetics acquired 15% of the 120,500 shares of...
Presented below are two independent situations.
1. Gambino Cosmetics acquired 15% of the 120,500 shares of
common stock of Nevins Fashion at a total cost of $12 per share on
March 18, 2015. On June 30, Nevins declared and paid a $70,400
dividend. On December 31, Nevins reported net income of $118,200
for the year. At December 31, the market price of Nevins Fashion
was $14 per share. The stock is classified as
available-for-sale.
2. Kanza, Inc., obtained significant influence...
Presented below are two independent situations. 1. Gambino Cosmetics acquired 15% of the 120,500 shares of...
Presented below are two independent situations.
1. Gambino Cosmetics acquired 15% of the 120,500 shares of
common stock of Nevins Fashion at a total cost of $12 per share on
March 18, 2015. On June 30, Nevins declared and paid a $70,400
dividend. On December 31, Nevins reported net income of $118,200
for the year. At December 31, the market price of Nevins Fashion
was $14 per share. The stock is classified as
available-for-sale.
2. Kanza, Inc., obtained significant influence...
Situation 1 Larkspur Cosmetics acquired 10% of the 184,000 shares of common stock of Martinez Fashion...
Situation 1
Larkspur Cosmetics acquired 10% of the 184,000 shares of common
stock of Martinez Fashion at a total cost of $13 per share on March
18, 2017. On June 30, Martinez declared and paid $69,400 cash
dividend to all stockholders. On December 31, Martinez reported net
income of $113,000 for the year. At December 31, the market price
of Martinez Fashion was $14 per share.
Situation 2
Cullumber, Inc. obtained significant influence over Seles
Corporation by buying 30% of...
Presented below are two independent situations. Answer the question at the end of each situation. 1. ...
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question at the end of each situation.
1. During 2020, Salt-n-Pepa Inc. became involved in
a tax dispute with the IRS. Salt-n-Pepa Inc. believe it is probable
that the company will lose this dispute and have to pay the IRS
$900,000. How should Salt-n-Pepa Inc. report this contingency as of
December 31st, 2020 (fiscal year end)? If needed,
prepare the journal entry for Salt-n-Pepa Inc.
Debit
Credit
2. Etheridge Inc. had a...
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Accounts receivable and accounts payable at year-end were $71,000
and $29,000, respectively. Assume that the accounts payable related
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Analyze the following independent situations. Required: For each situation, state the likelihood of a future event...
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Company A estimates it will have to pay $85,000 in warranty
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Company B is being sued by a customer. Company B's attorneys
feel that this is a frivolous lawsuit and there is very little
chance that the customer will win.
Company C co- signed a note payable for Company D. Company D is...
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