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jamaiciaw6
28.07.2021 •
Mathematics
Situation 1 Riverbed 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, 2020. On June 30, Martinez declared and paid $74,000 cash dividend to all stockholders. On December 31, Martinez reported net income of $127,600 for the year. At December 31, the market price of Martinez Fashion was $13 per share.
Situation 2 Marin, Inc. obtained significant influence over Seles Corporation by buying 30% of Seles's 31,300 outstanding shares of common stock at a total cost of $9 per share on January 1, 2020. On June 15, Seles declared and paid cash dividends of $36,600 to all stockholders. On December 31, Seles reported a net income of $80,100 for the year.
Prepare all necessary journal entries in 2020 for both situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.)
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Ответ:
Riverbed Cosmetics and Martinez Fashion
March 18, 2020:
Debit Investment in Martinez Fashion $2,580,000
Credit Cash $2,580,000
To record the acquisition of 10% of the 215,000 shares of common stock
June 30, 2020:
Debit Cash $7,400
Credit Dividend Income $7,400
To record dividend income received ($74,000 * 10%).
December 31, 2020:
Debit Investment in Martinez Fashion $215,000
Credit Unrealized Gain $215,000
To record the unrealized gain from the increase in share price.
Situation 2:
Marin, Inc. and Seles Corporation
January 1, 2020:
Debit Investment in Seles Corporation $84,510
Credit Cash $84,510
To record the 30% of Seles's 31,300 shares acquired at a total cost of $9 per share.
June 15, 2020:
Debit Cash $10,980
Credit Investment in Seles Corporation $10,980
To record the 30% of $36,600 dividends paid to all stockholders.
December 31, 2020:
Debit Investment in Seles Corporation $24,030
Credit Retained Earnings $24,030
To record the company's share of the net income.
Step-by-step explanation:
a) Data and Analysis:
Riverbed Cosmetics and Martinez Fashion
March 18, 2020: Investment in Martinez Fashion $2,580,000 Cash $2,580,000 10% of the 215,000 shares of common stock
June 30, 2020: Cash $7,400 Dividend Income $7,400 ($74,000 * 10%)
December 31, 2020: Investment in Martinez Fashion $215,000 Unrealized Gain $215,000
Situation 2:
Marin, Inc. and Seles Corporation
January 1, 2020: Investment in Seles Corporation $84,510 Cash $84,510
30% of Seles's 31,300 outstanding shares of common stock at a total cost of $9 per share
June 15, 2020: Cash $10,980 Investment in Seles Corporation $10,980
30% of $36,600 paid to all stockholders.
December 31, 2020: Investment in Seles Corporation $24,030 Retained Earnings $24,030
Ответ:
Sorry dont know ;c
Step-by-step explanation: