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Presented below are two independent situations. Situation 1 Sheridan Tables acquired 15% of the 5,000,000 shares of common stock of Robot Sofas at a total cost of $8.80 per share on April 1, 2025. On August 8, Robot Sofas declared and paid a $272,000 cash dividend. On December 31, Robot Sofas market price was $9.30 per share and the company reported net income of $695,000 for the year. Situation 2 On January 1, 2025, Splish Company purchased 40% of Santos Corporation 545,000 outstanding shares of common stock at a total cost of $14 per share. On October 25, Santos declared and paid a cash dividend of $0.40 per share. On December 31, Santos reported a net income of $833,000 for the year and the market price of its common stock was $15 per share. Prepare all necessary journal entries in 2025 for both situations. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date # Account Titles and Explanation Situation 1: Sheridan Tables Debit

Presented below are two independent situations. Situation 1 Sheridan Tables acquired 15% of the 5,000,000 shares of common stock of Robot Sofas at a total cost of $8.80 per share on April 1, 2025. On August 8, Robot Sofas declared and paid a $272,000 cash dividend. On December 31, Robot Sofas market price was $9.30 per share and the company reported net income of $695,000 for the year. Situation 2 On January 1, 2025, Splish Company purchased 40% of Santos Corporation 545,000 outstanding shares of common stock at a total cost of $14 per share. On October 25, Santos declared and paid a cash dividend of $0.40 per share. On December 31, Santos reported a net income of $833,000 for the year and the market price of its common stock was $15 per share. Prepare all necessary journal entries in 2025 for both situations. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date # Account Titles and Explanation Situation 1: Sheridan Tables Debit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Presented below are two independent situations. Situation 1 Sheridan Tables acquired 15% of the 5,000,000 shares of common stock of Robot Sofas at a total cost of $8.80 per share on April 1, 2025. On August 8, Robot Sofas declared and paid a $272,000 cash dividend. On December 31, Robot Sofas market price was $9.30 per share and the company reported net income of $695,000 for the year. Situation 2 On January 1, 2025, Splish Company purchased 40% of Santos Corporation 545,000 outstanding shares of common stock at a total cost of $14 per share. On October 25, Santos declared and paid a cash dividend of $0.40 per share. On December 31, Santos reported a net income of $833,000 for the year and the market price of its common stock was $15 per share. Prepare all necessary journal entries in 2025 for both situations. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date FEB 26 + Account Titles and Explanation Situation 1: Sheridan Tables Situation 2: Splish Company tv Debit -))
Transcribed Image Text:Presented below are two independent situations. Situation 1 Sheridan Tables acquired 15% of the 5,000,000 shares of common stock of Robot Sofas at a total cost of $8.80 per share on April 1, 2025. On August 8, Robot Sofas declared and paid a $272,000 cash dividend. On December 31, Robot Sofas market price was $9.30 per share and the company reported net income of $695,000 for the year. Situation 2 On January 1, 2025, Splish Company purchased 40% of Santos Corporation 545,000 outstanding shares of common stock at a total cost of $14 per share. On October 25, Santos declared and paid a cash dividend of $0.40 per share. On December 31, Santos reported a net income of $833,000 for the year and the market price of its common stock was $15 per share. Prepare all necessary journal entries in 2025 for both situations. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date FEB 26 + Account Titles and Explanation Situation 1: Sheridan Tables Situation 2: Splish Company tv Debit -))
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