Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following are two independent situations. Situation 1 Marigold Cosmetics acquired 10% of the 193,000 shares of common stock of Martinez Fashion at a total

The following are two independent situations. Situation 1 Marigold Cosmetics acquired 10% of the 193,000 shares of common stock of Martinez Fashion at a total cost of $ 14 per share on March 18, 2020. On June 30, Martinez declared and paid $ 67,500 cash dividend to all stockholders. On December 31, Martinez reported net income of $ 118,700 for the year. At December 31, the market price of Martinez Fashion was $ 15 per share. Situation 2 Swifty, Inc. obtained significant influence over Seles Corporation by buying 40% of Seless 30,700 outstanding shares of common stock at a total cost of $ 8 per share on January 1, 2020. On June 15, Seles declared and paid cash dividends of $ 38,300 to all stockholders. On December 31, Seles reported a net income of $ 84,200 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 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

Situation 1: Marigold Cosmetics

choose a transaction date Jan. 1, 2020Mar. 18, 2020June 15, 2020June 30, 2020Dec. 31, 2020

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date Jan. 1, 2020Mar. 18, 2020June 15, 2020June 30, 2020Dec. 31, 2020

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date Jan. 1, 2020Mar. 18, 2020June 15, 2020June 30, 2020Dec. 31, 2020

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

Situation 2: Swifty, Inc

choose a transaction date Jan. 1, 2020Mar. 18, 2020June 15, 2020June 30, 2020Dec. 31, 2020

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date Jan. 1, 2020Mar. 18, 2020June 15, 2020June 30, 2020Dec. 31, 2020

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date Jan. 1, 2020Mar. 18, 2020June 15, 2020June 30, 2020Dec. 31, 2020

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting concepts and applications

Authors: Albrecht Stice, Stice Swain

11th Edition

978-0538750196, 538745487, 538750197, 978-0538745482

More Books

Students also viewed these Accounting questions