The following are two independent situations. Situation 1 Carla Cosmetics acquired 10% of the 210,000 shares of common stock of Martinez Fashion at a total cost of $13 per share on March 18, 2020. On June 30, Martinez declared and paid $75,800 cash dividend to all stockholders. On December 31, Martinez reported net income of $129,200 for the year. At December 31, the market price of Martinez Fashion was $14 per share. Situation 2 Sarasota, Inc. obtained significant influence over Seles Corporation by buying 30% of Seless 28,400 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 $33,900 to all stockholders. On December 31, Seles reported a net income of $81,900 for the year. Prepare all necessary journal entries in 2020 for both situations.

Date Credit Account Titles and Explanation Debit Situation 1: Carla Cosmetics Situation 2: Sarasota, Inc