The following are two independent situations.
Situation 1: Conchita Cosmetics acquired 10% of the 204,600 shares of common stock of Martinez Fashion at a total cost of $15 per share on March 18, 2014. On June 30, Martinez declared and paid a $77,200 cash dividend. On December 31, Martinez reported net income of $123,100 for the year. At December 31, the market price of Martinez Fashion was $17 per share. The securities are classified as available-for-sale.
Situation 2: Monica, Inc. obtained significant influence over Seles Corporation by buying 32% of Seles's 32,800 outstanding shares of common stock at a total cost of $11 per share on January 1, 2014. On June 15, Seles declared and paid a cash dividend of $40,400. On December 31, Seles reported a net income of $87,500 for the year.
Required:
Prepare all necessary journal entries in 2014 for both situations.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The following are two independent situations. Situation 1: Conchita Cosmetics acquired 10% of the 204,600 shares of common stock of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which position has the duty to examine the cost implications of a proposed bill?
Answers (1)
The organization of 183 countries, all of which have signed treaties to protect intellectual property rights, is known as
Answers (1)
One-Stop, a national bank, conducted a survey on how long a customer usually has to wait at its bank. According to the survey, on an average, customers waited five to ten minutes in the queue to deposit their cash into a deposit machine.
Answers (1)
When a private individual brings a suit against the company for breaking a contract this is an example of?
Answers (1)
For 2018 , Potts marketing managers project monthly sales of 490 comma 000 12-ounce bottles and 200 comma 000 1-gallon containers. Average selling prices are estimated at $ 0.60 per 12-ounce bottle and $ 1.20 per 1-gallon container.
Answers (1)
New Questions in Business
Palmer Music manufactures and sells MP3 players and sound systems that include a 180-day warranty on product defects. The company also sells 2-year extended warranties.
Answers (2)
Keithomp, a company that manufactures and exports candies, sells different flavors of candy depending on the taste preferences of the country that it supplies to.
Answers (1)
Kane Company's employees earn vacation time at the rate of 1 hour per 40-hour work period. The vacation pay vests immediately (that is, an employee is entitled to the pay even if employment terminates).
Answers (1)
Digg Co. installs a manufacturing machine in its factory at the beginning of the year at a cost of $36,000. The machine's useful life is estimated at 10 years, or 300,000 units of product, with a $6,000 salvage value.
Answers (1)
Which of the following actions will likely cause a project to fail? A) dedicating valuable team member time to identify risk events B) spending project funding to procure needed tools and spare parts C) unclear or conflicting stakeholder
Answers (1)