Situation 1: Concord Cosmetics:
Date |
Account Titles & Explanations |
Debit |
Credit |
March 18, 2020 |
Available-for-Sale Securities (193000 * $14 * 10%) |
$270200 |
|
Cash |
$270200 |
||
June 30, 2020 |
Cash ($67500 * 10%) |
$6750 |
|
Dividend Revenue |
$6750 |
||
Dec 31, 2020 |
Securities Fair Value Adjustment(Available-for-Sale) ($15 - $14) * 19300 shares |
$19300 |
|
Unrealized Holding Gain or Loss—Equity |
$19300 |
Situation 2: Marigold, Inc:
Date |
Account Titles & Explanations |
Debit |
Credit |
Jan 1, 2020 |
Investment in Seles Corp. Stock (30700 * 40% * $8) |
$98240 |
|
Cash |
$98240 |
||
June 15, 2020 |
Cash ($38300 * 40%) |
$15320 |
|
Investment in Seles Corp. Stock |
$15320 |
||
Dec 31, 2020 |
Investment in Seles Corp. Stock ($84200 * 40%) |
$33680 |
|
Revenue from Investment |
$33680 |
The following are two independent situations. Situation 1 Concord Cosmetics acquired 10% of the 193,000 shares...
Situation 1 Sunland 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 Coronado, Inc. obtained significant influence over Seles Corporation by buying 40% of...
The following are two independent situations. Situation 1 Marigold 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 Situation 2 Swifty, Inc. obtained significant influence over...
The following are two independent situations. Situation 1 Nash 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, 2017. On June 30, Martinez declared and paid $81,300 cash dividend to all stockholders. On December 31, Martinez reported net income of $118,600 for the year. At December 31, the market price of Martinez Fashion was $15 per share. Situation 2 Crane, Inc. obtained significant influence over...
The following are two independent situations.
Situation 1
Carla Cosmetics acquired 10% of the 210,000 shares of common stock
of Martinez Fashion at a total cost of $13 per share on March 18,
2020. On June 30, Martinez declared and paid $75,800 cash dividend
to all stockholders. On December 31, Martinez reported net income
of $129,200 for the year. At December 31, the market price of
Martinez Fashion was $14 per share.
Situation 2
Sarasota, Inc. obtained significant influence over...
The following are two independent situations. Situation 1 Sweet Cosmetics acquired 10% of the 191,000 shares of common stock of Martinez Fashion at a total cost of $13 per share on March 18, 2020. On June 30, Martinez declared and paid $74,500 cash dividend to all stockholders. On December 31, Martinez reported net income of $120,500 for the year. At December 31, the market price of Martinez Fashion was $14 per share. Situation 2 Pharoah, Inc. obtained significant influence over...
*Exercise 17-12 The following are two independent situations. Situation 1 Sunland 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, 2017. 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. Situation 2 Coronado, Inc. obtained significant...
Situation 1 Riverbed 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 $69,200 cash dividend to all stockholders. On December 31, Martinez reported net income of $116,000 for the year. At December 31, the market price of Martinez Fashion was $15 per share. Situation 2 Marin, Inc. obtained significant influence over Seles Corporation by buying 40% of...
The following are two independent situations. Situation 1 Conchita Cosmetics acquired 10% of the 200,000 shares of common stock of Martinez Fashion at a total cost of $13 per share on March 18, 2017. On June 30, Martinez declared and paid $75,000 cash dividend to all stockholders. On December 31, Martinez reported net income of $122,000 for the year. At December 31, the market price of Martinez Fashion was $15 per share. Situation 2 Monica, Inc. obtained significant influence over...
The following are two independent situations. Situation 1 Novak Cosmetics acquired 10% of the 198,000 shares of common stock of Martinez Fashion at a total cost of $12 per share on March 18, 2017. On June 30, Martinez declared and paid $82,000 cash dividend to all stockholders. On December 31, Martinez reported net income of $119,400 for the year. At December 31, the market price of Martinez Fashion was $13 per share. Situation 2 Splish, Inc. obtained significant influence over...
The following are two independent situations.
Situation 1
Cheyenne Cosmetics acquired 10% of the 185,000 shares of common
stock of Martinez Fashion at a total cost of $12 per share on March
18, 2017. On June 30, Martinez declared and paid $79,800 cash
dividend to all stockholders. On December 31, Martinez reported net
income of $115,000 for the year. At December 31, the market price
of Martinez Fashion was $13 per share.
Situation 2
Ayayai, Inc. obtained significant influence over...