Prepare all necessary journal entries for both situations

Assignment Help Accounting Basics

Reference no: EM132676009

The following are two independent situations

Cheyenne Cosmetics acquired 10% of the 191,000 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 $80,900 cash dividend to all stockholders. On December 31, Martinez reported net income of $121,000 for the year. At December 31, the market price of Martinez Fashion was $15 per share.

Ayayai, Inc. obtained significant influence over Seles Corporation by buying 30% of Seles's 29,700 outstanding shares of common stock at a total cost of $10 per share on January 1, 2020. On June 15, Seles declared and paid cash dividends of $33,000 to all stockholders. On December 31, Seles reported a net income of $79,200 for the year.

Problem 1: Prepare all necessary journal entries in 2020 for both situations.

Reference no: EM132676009

Questions Cloud

Life experience and values : In article "Managing Oneself," author Peter F. Drucker states that "What one does well - even very well and successfully - may not fit with one's value system

What is formal and lnformal leadership : 1. Please explain what is formal and lnformal leadership? 2. What is leadership theory?

Find which is the variable overhead spending variance : During the year, Factory A actually produced 10,000 units, used 20,000 direct labour hours. Which one is the variable overhead spending variance?

Explain implications of importing labor-intensive goods : Evaluate and explain the implications of importing labor-intensive goods and exporting capital-intensive goods. If there are negative effects of this process

Prepare all necessary journal entries for both situations : Prepare all necessary journal entries in 2020 for both situations. Cheyenne Cosmetics acquired 10% of the 191,000 shares of common stock of Martinez Fashion

Evaluate the history of cryptography : Evaluate the history of cryptography from its origins. Analyze how cryptography was used and describe how it grew within history.

Prepare the journal entry to record sale of the colorado co : On December 21, 2020, Whispering Company, Prepare the journal entry to record the sale of the Colorado Co. stock during 2021.

What is the death by overwork case at japan : The chief executive of Japan's largest advertising agency said he would resign in January to take responsibility for alleged labor-law violations

Devise plan for accommodating conflicting responses : Devise a plan for accommodating conflicting responses for the same procedure from two different people you interviewed.

User Account

All Pages