+ Chapter 16 Question 18 of 53 -11 View Policies Current Attempt in Progress Presented below are two independent situations. 1. Guo Cosmetics acquired 10% of the 200,000 shares of common stock of Chy Fashion at a total cost of $12 per share on March 18, 2020. On June 30, Chy declared and paid a $50,000 dividend. On December 31, Chy reported net income of $110,000 for the year. At December 31, the market price of Chy Fashion was $15 per share. The stock is classified as available for-sale. Liptin, Inc., obtained significant influence over Blurr Corporation by buying 25% of Blurr 50,000 outstanding shares of common stock at a total cost of $7 per share on January 1, 2020. On June 15, Blurr declared and paid a cash dividend of $40.000. On December 31, Blurr reported a net income of $90,000 for the year. 2. Prepare all the necessary journal entries for 2020 for (a) Guo Cosmetics and (b) Liptin, Inc. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date 2020 Account Titles and Explanation Debit Credit (a) - / 1 Question 18 of 53 N 2020 (a) > > (b) e 13