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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 O for the amounts.)

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 O for the amounts.)

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 21P
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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 O for the amounts.)
Transcribed Image Text: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 O for the amounts.)
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