1. Lorfeld Ltd. acquired 10% of the 540,800 ordinary shares of Northbrook Enterprises at a total cost of 11 per share on June 17, 2017. On September 3, Northbrook declared and paid a 146,700 dividend. On December 31, Northbrook reported net income of 573,100 for the year.

2. Saa Ltd. obtained significant influence over Sheridan Company by buying 30% of Sheridans 198,900 outstanding ordinary shares at a cost of 20 per share on January 1, 2017. On May 15, Sheridan declared and paid a cash dividend of 186,200. On December 31, Sheridan reported net income of 265,200 for the year.

Do Itl Review 12-2 Presented below are two independent situations: Lorfeld Ltd. acquired 10% of the 540,800 for the year dinary shares of Northbrook Enterprises at a total cost of 11 per share on June 17 2017 On September 3 North rook deda ed and paid 146,700 dividend. On December 31 Northbrook re orted net income of573 100 Ltd. obtained significant influence over Sheridan Company by buying 30% 0 Sheridan's 196 900 standing ordinary shares at a cost o 20 per share on January 1 2017 On May 15, sheridan declared and paid a cash dividend of 186 200 on Decembe Sheridan reported net income of 265,200 for the year. Prepare all necessary journal entries for 2017 for (al Lorfeld and (b) Saa. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit