Exercise 17-12 The following are two independent situations. Situation 1 Headland Cosmetics acquired 10% of the 198,000 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 $82,000 cash dividend to all stockholders. On December 31, Martinez reported net income of $119,400 for the year. At December 31, the market price of Martinez Fashion was $13 per share. Situation 2 Sage, Inc. obtained significant influence over Seles Corporation by buying 40% of Seles's 28,200 outstanding shares of common stock at a total cost of $10 per share on January 1, 2020. On June 15, Seles declared and paid cash dividends of $36,300 to all stockholders. On December 31, Seles reported a net income of $87,100 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. Date Credit Account Titles and Explanation Debit Situation 1: Headland Cosmetics Mar. 18, 2020 237,600 Cash 237,600 June 30, 2020 Cash 8,200 Dividend Revenue 8,200 Dec. 31, 2020 Fair Value Adjustment 19,800 19,800 Unrealized Holding Gair Situation 2: Sage, Inc Jan. 1, 2020 112,800 Cash 112,800 June 15, 2020 Cash 14,520 14,520 Dec. 31, 2020 34,840 Revenue from Investme 34,840 List Of Accounts Exercise 17-12 Accumulated Other Comprehensive Loss Allowance for Doubtful Accounts Allowance to Reduce Inventory to Market Bad Debt Expense Bonds Payable Cash Call Option Common Stock Cost of Goods Sold Debt Investments Dividend Revenue Dividend Receivable Equity Investments Fair Value Adjustment Futures Contract Gain on Sale of Investments Gain on Settlement of Call Option Gain on Settlement of Put Option Gain on Sale of Investments Gain on Settlement of Call Option Gain on Settlement of Put Option Interest Expense Interest Receivable Interest Revenue Inventory Investment Income Loss on Impairment Loss on Sale of Investments Loss on Settlement of Call Option Loss on Settlement of Put Option No Entry Notes Payable Paid-in Capital in Excess of Par - Common Stock Put Option Recovery of Loss from Impairment Retained Earnings Revenue from Investment Sales Revenue Swap Contract Unrealized Holding Gain or Loss - Equity Unrealized Holding Gain or Loss - Income