15-3 Prepare all the necessary journal entries for (a) Ritter Cosmetics and (b) Somer, Inc. a) Ritter Cosmetics acquired 10% of the 200,000 shares of common stock of Mai Fashion at a total cost of $13 per share on March 18, 2018. On June 30, Mai declared and paid a $70,000 dividend. On December 31, Mai reported net income of $122,000 for the year. At Dec. 31, the market price of Mai Fashion was $15 per share. The stock is classified as available-for-sale. b) Somer, Inc. obtained significant influence over Ortiz Corporation by Buying 40% of Ortiz's 30,000 outstanding shares of common stock at a total cost of $9 per share on Jan. 1. 2018. On June 15, Ortiz declared and paid a cash dividend of $35,000. On Dec. 31, Ortiz reported a net income of $80,000 for the year. 15-3 (a) 2018 18-Mar Long Term Investments - Stocks Cash 30-Jun Cash Dividend Revenue 31-Dec Market Adjustment - Available for sale Unrealized Gain - Equity (b) 2018 1-Jan Long Term Investments - Stocks Cash 15-Jun Cash Long Term Investments - Stocks 31-Dec Long Term Investments - Stocks Earnings from LT Investments - Stocks