The following are two independent situations. Situation 1 Splish Cosmetics acquired 10% of the 206,000 shares of common stock of Martinez Fashion at a total cost of $12 per share on March 18, 2020. On June 30, Martinez declared and paid $70,500 cash dividend to all stockholders. On December 31, Martinez reported net income of $112,700 for the year. At December 31, the market price of Martinez Fashion was $13 per share. Situation 2 Blossom, Inc. obtained significant influence over Seles Corporation by buying 40% of Seless 28,800 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 $35,200 to all stockholders. On December 31, Seles reported a net income of $85,400 for the year. Prepare all necessary journal entries in 2020 for both situations.

Date Credit Account Titles and Explanation Debit Situation 1: Splish Cosmetics > Situation 2: Blossom, Inc >