1 2 are two independent situations Crane Cosmetics acquired 15% of the 135,500 shares of common stock of Nevins Fashion at a total cost of $11 per share on March 18, 2022. On June 30, Nevins declared and paid a $53,500 dividend. On December 31, Nevins reported net income of $115,000 for the year, At December 31, the market price of Nevins Fashion was $13 per share. Novak, Inc., obtained significant influence over Rogan Corporation by buying 30% of Rogan's 35,300 outstanding shares of common stock at a total cost of $9 per share on January 1, 2022. On June 15, Rogan declared and paid a cash dividend of $33,900. On December 31, Rogan reported a net income of $87.500 for the year. Prepare all the necessary journal entries for 2022 for (a) Crane Cosmetics and (b) Novak, Inc. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No entry" for the account titles and enter O for the amounts)
1 2 are two independent situations Crane Cosmetics acquired 15% of the 135,500 shares of common stock of Nevins Fashion at a total cost of $11 per share on March 18, 2022. On June 30, Nevins declared and paid a $53,500 dividend. On December 31, Nevins reported net income of $115,000 for the year, At December 31, the market price of Nevins Fashion was $13 per share. Novak, Inc., obtained significant influence over Rogan Corporation by buying 30% of Rogan's 35,300 outstanding shares of common stock at a total cost of $9 per share on January 1, 2022. On June 15, Rogan declared and paid a cash dividend of $33,900. On December 31, Rogan reported a net income of $87.500 for the year. Prepare all the necessary journal entries for 2022 for (a) Crane Cosmetics and (b) Novak, Inc. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No entry" for the account titles and enter O for the amounts)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject - Acounting
Transcribed Image Text:(a)
(b)
Date
Mar 18
June 30
Dec 31
Jan 1
June 15
Dec 31
Account Titles and Explanation
Stock Investments
Cash
Dividend Revenue
Fair Value Adjustment-Available-for-Sale
Unrealized Gain or Loss-income
Stock Investments
Cash
Cash
Stock Investments
Stock Investments
Revenue from Stock Investments
Debit
103365
20025
53500
95100
DOU!
10170
29250
Credit
10036
2002
5350
9510
1011
2925
Transcribed Image Text:The following are two independent situations
Crane Cosmetics acquired 15% of the 135,500 shares of common stock of Nevins Fashion at a total cost of $11 per share on
March 18, 2022. On June 30, Nevins declared and paid a $53,500 dividend. On December 31. Nevins reported net income of
$115,000 for the year. At December 31, the market price of Nevins Fashion was $13 per share.
1
2
Novak, Inc., obtained significant influence over Rogan Corporation by buying 30% of Rogan's 35.300 outstanding shares of
common stock at a total cost of $9 per share on January 1, 2022. On June 15, Rogan declared and paid a cash dividend of
$33,900. On December 31, Rogan reported a net income of $87.500 for the year.
Prepare all the necessary journal entries for 2022 for (a) Crane Cosmetics and (b) Novak, Inc. (List all debit entries before credit entries.
Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented
in the problem. If no entry is required, select "No entry" for the account titles and enter O for the amounts)
Account Titles and Explanation
Date
(a) Mar 18
June 30
Dec. 31
Stock Investments
Cash
Cash
Dividend Revenue
Fair Value Adjustment-Available-for-Sale
Unrmalized Gain or Loss-Income
Debit
103365
20025
53500
Credit
10336
2002
5350
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