Make all necessary journal entries for Cullumber

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Question - Presented below are two independent situations:

(a) Cullumber Inc. acquired 10% of the 424,000 shares of common stock of Schuberger Corporation at a total cost of $14 per share on June 17, 2020. On September 3, Schuberger declared and paid a $124,000 dividend. On December 31, Schuberger reported net income of $524,000 for the year.

(b) Pharoah Corporation obtained significant influence over Hunsaker Company by buying 30% of Hunsaker's 124,000outstanding shares of common stock at a cost of $15 per share on January 1, 2020. On May 15, Hunsaker declared and paid a cash dividend of $124,000. On December 31, Hunsaker reported net income of $224,000 for the year.

Make all necessary journal entries for 2020 for (a) Cullumber and (b) Pharoah.

Reference no: EM132746001

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