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 the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
As a ball is thrown upwards, compare the signs of the work done by gravity while the ball goes up, and when the ball goes down. A Up: Positive Down: Positive B Up: Negative Down: Positive C Up: Positive Down: Negative D Up: Negative Down: Negative
Answers (1)
On January 1, 2018, the stockholders' equity section of Nance Corporation shows: Common stock ($2 par value) $1,200,000; paid-in capital in excess of par value $2,500,000; and retained earnings $1,000,000.
Answers (1)
list all the working capital accounts. (Select the best response.) A. The working capital accounts are the current assets and fixed assets of the company. B. The working capital accounts are the current assets and total liabilities of the company. C.
Answers (1)
Husker Corporation reports current E&P of negative $200,000 in year 1 and accumulated E&P at the beginning of the year of $300,000. Husker distributed $200,000 to its sole shareholder on December 31, year 1.
Answers (1)
Keesha is the CEO of a publicly-owned company. She was informed by the CFO that the company's earnings were down 30 percent from the prior year due to the recession. The company's stock price has declined by 20 percent.
Answers (1)
New Questions in Business
Natalie has an easement to drive across Donald's road. Which of the following circumstances would terminate this easement? A. Sale of Natalie's propertyB. Sale of Donald's propertyC. Revocation of the easement by DonaldD.
Answers (1)
In a basic AD-AS model, if the economy is at the equilibrium on the far left of the potential real output level, then a contractionary monetary policy will
Answers (2)
What is the most common work-related hazard for a room attendant
Answers (1)
What may happen if the threaded heating element in percolator is not very tightly mounted
Answers (1)
Cole is refinishing an antique china cabinet and has already spent $180 on the restoration. He expects to be able to sell the cabinet for $360.
Answers (1)