The following are two independent situations.

Situation 1: Conchita Cosmetics acquired 10% of the 216,800 shares of common stock of Martinez Fashion at a total cost of $13 per share on March 18, 2014. On June 30, Martinez declared and paid a $80,400 cash dividend. On December 31, Martinez reported net income of $123,400 for the year. At December 31, the market price of Martinez Fashion was $16 per share. The securities are classified as available-for-sale.

Situation 2: Monica, Inc. obtained significant influence over Seles Corporation by buying 31% of Seless 34,000 outstanding shares of common stock at a total cost of $10 per share on January 1, 2014. On June 15, Seles declared and paid a cash dividend of $43,300. On December 31, Seles reported a net income of $93,900 for the year.

Prepare all necessary journal entries in 2014 for both situations.