Kingbird Cosmetics acquired 10% of the 248,000 shares of common stock of Chy Fashion at a total cost of $12 per share on March 18, 2020. On June 30, Chy declared and paid a $62,000 dividend. On December 31, Chy reported net income of $136,400 for the year. At December 31, the market price of Chy Fashion was $15 per share. Blossom, Inc., obtained significant influence over Blurr Corporation by buying 25% of Blurr's 62,000 outstanding shares of common stock at a total cost of $7 per share on January 1, 2020. On June 15, Blurr declared and paid a cash dividend of $49,600. On December 31, Blurr reported a net income of $111,600 for the year. Prepare all the necessary journal entries for 2020 for (a) Kingbird Cosmetics and (b) Blossom, Inc. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit 2020 10 (b)
Kingbird Cosmetics acquired 10% of the 248,000 shares of common stock of Chy Fashion at a total cost of $12 per share on March 18, 2020. On June 30, Chy declared and paid a $62,000 dividend. On December 31, Chy reported net income of $136,400 for the year. At December 31, the market price of Chy Fashion was $15 per share. Blossom, Inc., obtained significant influence over Blurr Corporation by buying 25% of Blurr's 62,000 outstanding shares of common stock at a total cost of $7 per share on January 1, 2020. On June 15, Blurr declared and paid a cash dividend of $49,600. On December 31, Blurr reported a net income of $111,600 for the year. Prepare all the necessary journal entries for 2020 for (a) Kingbird Cosmetics and (b) Blossom, Inc. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit 2020 10 (b)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Unit IV question 3
Transcribed Image Text:Kingbird Cosmetics acquired 10% of the 248,000 shares of common stock of Chy Fashion at a total cost of $12 per share on
March 18, 2020. On June 30, Chy declared and paid a $62,000 dividend. On December 31, Chy reported net income of
$136,400 for the year. At December 31, the market price of Chy Fashion was $15 per share.
Blossom, Inc., obtained significant influence over Blurr Corporation by buying 25% of Blurr's 62,000 outstanding shares of
common stock at a total cost of $7 per share on January 1, 2020. On June 15, Blurr declared and paid a cash dividend of
$49,600. On December 31, Blurr reported a net income of $111,600 for the year.
Prepare all the necessary journal entries for 2020 for (a) Kingbird Cosmetics and (b) Blossom, Inc. (Credit account titles are automatically
indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries
before credit entries.)
Date
Account Titles and Explanation
Debit
Credit
2020
10
(b)
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