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The following are independent situations. Situation 1 : Ivanhoe Cosmetics acquired 1 0 % of the 1 9 6 , 0 0 0 shares of
The following are independent situations.
Situation :
Ivanhoe Cosmetics acquired of the shares of common stock of Martinez Fashion at a total cost of $ per share on March On June Martinez declared and paid $ cash dividends to all stockholders. On December Martinez reported net income of $ for the year. At December the market price of Martinez Fashion was $ per share.
Situation :
Shamrock, Inc. obtained significant influence over Seles Corporation by buying of Seles's outstanding shar es of common stock at a total cost of $ per share on January On June Seles declared and paid cash dividends of $ to all stockholders. On December Seles reported a net income of $ for the year.
Prepare all necessary journal entries in for both situations, List all debit entries before credit entries. 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 for the amounts. Record journal entries in the order presented in the problem.
Date
Account Titles and Explanation
Account Titles and Explanation
Situation : Ivanhoe Cosmetics
Debit
Credit
Cash
Dividend Revenue
Fair Value Adjustment
Unrealized Holding Gain or Loss Equity
Situation : Shamrock, Inc
Equity Investments
Cash
Cash
Equity Investments
Equity Investments
Revenue from Investment
eTextbook and Media
List of Accounts
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