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
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Situation 2
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The following are two independent situations.
Situation 1
Whoo Cosmetics acquired 12% of the
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$15 per share on Oct. 18, 2018. On Oct. 30, Loreal declared and
paid $60,000 cash dividend to all stockholders. On December 31,
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Situation 2
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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
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Presented below are two independent situations.
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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
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dividend. On December 31, Nevins reported net income of $118,200
for the year. At December 31, the market price of Nevins Fashion
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Situation 1
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