Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Presented below are two independent situations Gambino Cosmetics acquired 10% of the 280,000 shares of common stock of Nevins Fashion at a total cost of
Presented below are two independent situations Gambino Cosmetics acquired 10% of the 280,000 shares of common stock of Nevins Fashion at a total cost of $10 per share on March 18, 2017, On June 30, Nevins declared and paid a $64,000 dividend. On December 31, Nevins reported net income of $111,000 for the year. At December 31, the market price of Nevins Fashion was $12 per share. The stock is classified as available-for-sale Kanza, Inc., obtained significant influence over Rogan Corporation by buying 40% of Rogan's 38,000 outstanding shares of common stock at a total cost of $9 per share on January 1, 2017. On June 15, Rogan declared and paid a cash dividend of $32,000. On December 31, Rogan reported a net income of $90,000 for the year. 1. Prepare all the necessary journal entries for 2017 for (a) Gambino Cosmetics and (b) Kanza, 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. If no entry is required select "No entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit a) TMar, 18 Stock Investmen Cash une 30 Cash Dividends revenue ec. 31 Fair Value Adjustment-Available-for-Sal Dan. 1TStock Investmen Cash une 15 Cash Dividends recievable ec. 31 revenue from investm Question Attempts: 1 of 3 used
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started