A2) Hello! I need urgent help with the following accounting question:1. Cullumber Cosmetics acquired 13% of the 301,200 shares of common stock of Elite Fashion at a total cost of $14 per share on March 18, 2022. On June 30, Elite declared and paid a $70,100 dividend. On December 31, Elite reported net income of $226,500 for the year. At December 31, the market price of Elite Fashion was $15 per share.2. Bramble Inc. obtained significant influence over Kasey Corporation by buying 25% of Kasey's 32,700 outstanding shares of common stock at a total cost of $10 per share on January 1, 2022. On June 15, Kasey declared and paid a cash dividend of $31,600. On December 31, Kasey reported a net income of $116,000 for the year.Promt is also shared below with addition to numbers. Thank you in advance! **Text and Diagram Transcription for Educational Website:**---### Two Independent Financial Situations1. **Cullumber Cosmetics Investment:** - Acquired 13% of Elite Fashion's 301,200 common stock shares at $14 per share on March 18, 2022. - On June 30, Elite declared and paid a $70,100 dividend. - Elite reported a net income of $226,500 for the year on December 31. - Market price of Elite Fashion was $15 per share at year-end.2. **Bramble Inc.'s Influence over Kasey Corporation:** - Purchased 25% of Kasey’s 32,700 outstanding shares at $10 per share on January 1, 2022. - Kasey declared and paid a $31,600 cash dividend on June 15. - Reported a net income of $116,000 on December 31.---### Journal Entry Preparation**Task:** Prepare all necessary journal entries for 2022 for Cullumber Cosmetics.- **Instructions:** Record entries in order. Credit account titles are auto-indented with the entered amount. No manual indentation. If no entry is required, select "No Entry" and enter 0 for amounts.**Entry Dates:**- March 18- June 30- December 31**Areas for Input:**- Dropdowns and fields provided to record dates, account titles, and amounts.### Diagram Explanation- The diagram consists of dropdown selections for dates (March 18, June 30, December 31) and corresponding fields to input account titles and monetary amounts for journal entries. It guides users through entering necessary financial data systematically.---

Purchasing and holding stocks or shares in a company entitles a person or organization to a portion of the company's ownership. This is called an equity investment. Investing in equity is essentially buying common stock, which represents ownership (equity).The presentation of the journal entries for cullumber cosmeticsDateAccount Titles & ExplanationDebit $Credit $Mar.18Stocks Investment $548,184 Cash$548,184( To record Purchase of Investment )June.30Cash $9,113 Dividend Revenue$9,113( To record Dividend Received )Dec.31Fair Value Adjustment - Stock$39,156 Unrealized Gain or loss - Income$39,156( To record Fair value adjustment )The presentation of the journal entries for Bramble INCDateAccount Titles & ExplanationDebit $Credit $Jan. 1Equity Investments$81,750 Cash$81,750(To record purcahse of equity investmnet)June. 15Cash$7,900 Equity Investments$7,900(To record dividend received )Dec. 31Equity Investments$29,000 Investment Income$29,000(To record net income )

Answered: A2) Hello! I need urgent help with the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

A2) Hello! I need urgent help with the following accounting question:

1. Cullumber Cosmetics acquired 13% of the 301,200 shares of common stock of Elite Fashion at a total cost of $14 per share on March 18, 2022. On June 30, Elite declared and paid a $70,100 dividend. On December 31, Elite reported net income of $226,500 for the year. At December 31, the market price of Elite Fashion was $15 per share.

2. Bramble Inc. obtained significant influence over Kasey Corporation by buying 25% of Kasey's 32,700 outstanding shares of common stock at a total cost of $10 per share on January 1, 2022. On June 15, Kasey declared and paid a cash dividend of $31,600. On December 31, Kasey reported a net income of $116,000 for the year.

Promt is also shared below with addition to numbers. Thank you in advance!

**Text and Diagram Transcription for Educational Website:**

---

### Two Independent Financial Situations

1. **Cullumber Cosmetics Investment:**
- Acquired 13% of Elite Fashion's 301,200 common stock shares at $14 per share on March 18, 2022.
- On June 30, Elite declared and paid a $70,100 dividend.
- Elite reported a net income of $226,500 for the year on December 31.
- Market price of Elite Fashion was $15 per share at year-end.

2. **Bramble Inc.'s Influence over Kasey Corporation:**
- Purchased 25% of Kasey’s 32,700 outstanding shares at $10 per share on January 1, 2022.
- Kasey declared and paid a $31,600 cash dividend on June 15.
- Reported a net income of $116,000 on December 31.

---

### Journal Entry Preparation

**Task:** Prepare all necessary journal entries for 2022 for Cullumber Cosmetics.

- **Instructions:** Record entries in order. Credit account titles are auto-indented with the entered amount. No manual indentation. If no entry is required, select "No Entry" and enter 0 for amounts.

**Entry Dates:**
- March 18
- June 30
- December 31

**Areas for Input:**
- Dropdowns and fields provided to record dates, account titles, and amounts.

### Diagram Explanation

- The diagram consists of dropdown selections for dates (March 18, June 30, December 31) and corresponding fields to input account titles and monetary amounts for journal entries. It guides users through entering necessary financial data systematically.

---

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.