Answer | ||||
Situation 1 - Sunland Cosmetics | ||||
Accounting titles & Explanations | Debit | Credit | ||
18-Mar | Available for sale securities | $ 267,400 | ||
Cash(19100*14) | $ 267,400 | |||
30-Jun | Cash | $ 8,090 | ||
Dividend revenue (80900*10%) | $ 8,090 | |||
31-Dec | Fair value adjustment(191,00*1) | $ 19,100 | ||
unrealized holding gain or loss | $ 19,100 | |||
Situation 2- Corondo inc | |||
Accounting titles & Explanations | Debit | Credit | |
01-Jan | investment in stock | $ 89,100 | |
cash (29,700*10*30%) | $ 89,100 | ||
15-Jun | Cash (33000*30%) | $ 9,900 | |
investment | $ 9,900 | ||
31-Dec | investment | $ 23,760 | |
income on investment(79200*30%) | $ 23,760 |
*Exercise 17-12 The following are two independent situations. Situation 1 Sunland Cosmetics acquired 10% of the...
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