Presented below are two independent

situations. Show all necessary journal

entries in 2020 for both situations.

Situation 1: People Tables acquired

15% of the 5.000.000 shares of

common stock of RobotPresented

below are two independent situations.

Show all necessary journal entries in

2020 for both situations.

Situation 1:

People Tables acquired 15% of the

5,000,000 shares of common stock of

Robot Sofas at a total cost of $8.50

per share on April 1, 2020. On August

8, Robot Sofas declared and paid a

cash dividend of $0.50 per share. On

December 31, Robot Sofas market

price was $9.00 per share and the

company reported net income of

$685.000 for the year.

Situation 2: On January 1, 2020, Mica Company

purchased 40% of Santos Corporation

500,000 outstanding shares of

common stock at a total cost of $13 per share. On October 25, Santos

declared and paid a cash dividend of

$0.40 per share. On December 31,

Santos reported a net income of

$860,000 for the year and the market

price of its common stock was $14 per

share.