Presented below are two independent situations. (1) Grand Cosmetics acquired 10% of the 200,000 ordinary shares of Cey Fashion at a total cost of $12 per share on March 18, 2020. On June 30, Cey declared and paid a $60,000 dividend. On December 31, Cey reported net income of $110,000 for the year. At December 31, the market price of Cey Fashion was S15 per share. The shares are classified as non-trading. (2) Unruh, Inc., obtained significant influence over Olsen Corporation by buying 25% of Olsen's 40,000 outstanding ordinary shares at a total cost of $7 per share on January 1, 2020. On June 15, Olsen declared and paid a cash dividend of $30,000. On December 31, Olsen reported a net income of $80,000 for the year Instructions Prepare all the necessary jounal entries for 2020 for (a) Grand Cosmetics and (b) Unruh, Inc

Presented below are two independent situations. (1) Grand Cosmetics acquired 10% of the 200,000 ordinary shares of Cey Fashion at a total cost of $12 per share on March 18, 2020. On June 30, Cey declared and paid a $60,000 dividend. On December 31, Cey reported net income of $110,000 for the year. At December 31, the market price of Cey Fashion was S15 per share. The shares are classified as non-trading. (2) Unruh, Inc., obtained significant influence over Olsen Corporation by buying 25% of Olsen's 40,000 outstanding ordinary shares at a total cost of $7 per share on January 1, 2020. On June 15, Olsen declared and paid a cash dividend of $30,000. On December 31, Olsen reported a net income of $80,000 for the year Instructions Prepare all the necessary jounal entries for 2020 for (a) Grand Cosmetics and (b) Unruh, Inc

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

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Presented below are two independent situations.
(1) Grand Cosmetics acquired 10% of the 200,000 ordinary shares of Cey Fashion at a total
cost of $12 per share on March 18, 2020. On June 30, Cey declared and paid a $60,000
dividend. On December 31, Cey reported net income of $110,000 for the year. At
December 31, the market price of Cey Fashion was $15 per share. The shares are classified
as non-trading.
(2) Unruh, Inc. obtained significant influence over Olsen Corporation by buying 25% of
Olsen's 40,000 outstanding ordinary shares at a total cost of $7 per share on January 1.
2020. On June 15, Olsen declared and paid a cash dividend of $30,000. On December 31.
Olsen reported a net income of SS0.000 for the year.
Instructions
Prepare all the necessary journal entries for 2020 for (a) Grand Cosmetics and (b) Unruh, Inc

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