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help fill wrong entry Situation 1 Carla Cosmetics acquired 10% of the 185,000 shares of common stock of Martinez Fashion at a total cost of
help fill wrong entry
Situation 1 Carla Cosmetics acquired 10% of the 185,000 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 $79,800 cash dividend to all stockholders. On December 31 , Martinez reported net income of $115,000 for the year. At December 31 , the market price of Martinez Fashion was $13 per share. Situation 2 Sarasota, Inc. obtained significant influence over Seles Corporation by buying 30\% of Seles's 27,300 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 $39,100 to all stockholders. On December 31. Seles reported a net income of $92.200 for the yeal. Prepare all necessary journal entries in 2020 for both situations. (Credit occount titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Situation 1: Carla Cosmetics Mar. 18,2020 Unrealized Holding Gain or Loss-Equity Cash June 30,2020 June 30.2020 Dec 31,2020 Cash Dividend Reverue Fair Value Adjustinent Unrealized Halding Gain or Loss - Income 2220 Situation 2: Sarasota, Inc tan1,2020 Cash 737 Cash Imvestment income Reveruue from Investment. 27660 investment Income 276t Step by Step Solution
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