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The following are two independent situations. Situation 1 Kingbird Cosmetics acquired 10% of the 187,000shares of common stock of Martinez Fashion at a total
The following are two independent situations. Situation 1 Kingbird Cosmetics acquired 10% of the 187,000shares of common stock of Martinez Fashion at a total cost of $13per share on March 18, 2020. On June 30, Martinez declared and paid $68,400cash dividend to all stockholders. On December 31, Martinez reported net income of $117,600 for the year. At December 31, the market price of Martinez Fashion was $14per share. Situation 2 Oriole, Inc. obtained significant influence over Seles Corporation by buying 40% of Seles's 27,000outstanding shares of common stock at a total cost of $9per share on January 1, 2020. On June 15, Seles declared and paid cash dividends of $39,200 to all stockholders. On December 31, Seles reported a net income of $84,700 for the year. Prepare all necessary journal entries in 2020 for both situations. (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 O for the amounts.) Date Mar. 18, 2020 June 30, 2020 Dec. 31, 2020 Account Titles and Explanation Debit Situation 1: Kingbird Cosmetics Credit
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