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The following are independent situations. Situation 1: Novak Cosmetics acquired 10% of the 215,000 shares of common stock of Martinez Fashion at a total cost of $12 per share on March 18, 2025. On June 30, Martinez declared and paid $74,400 cash dividends to all stockholders. On December 31, Martinez reported net income of $133,600 for the year. At December 31, the market price of Martinez Fashion was $13 per share. Situation 2: Splish, Inc. obtained significant influence over Seles Corporation by buying 30% of Seles's 28,500 outstanding shares of common stock at a total cost of $9 per share on January 1, 2025. On June 15, Seles declared and paid cash dividends of $35,400 to all stockholders. On December 31, Seles reported a net income of $91,800 for the year. Prepare all necessary journal entries in 2025 for both situations. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Account Titles and Explanation Date Situation 1: Novak Cosmetics Jan. 1, 2025 Mar. 18, 2025 June 15, 2025 hc June 30, 2025 Dec. 31, 2025 Debit Credit Situation 2: Splish, Inc

The following are independent situations. Situation 1: Novak Cosmetics acquired 10% of the 215,000 shares of common stock of Martinez Fashion at a total cost of $12 per share on March 18, 2025. On June 30, Martinez declared and paid $74,400 cash dividends to all stockholders. On December 31, Martinez reported net income of $133,600 for the year. At December 31, the market price of Martinez Fashion was $13 per share. Situation 2: Splish, Inc. obtained significant influence over Seles Corporation by buying 30% of Seles's 28,500 outstanding shares of common stock at a total cost of $9 per share on January 1, 2025. On June 15, Seles declared and paid cash dividends of $35,400 to all stockholders. On December 31, Seles reported a net income of $91,800 for the year. Prepare all necessary journal entries in 2025 for both situations. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Account Titles and Explanation Date Situation 1: Novak Cosmetics Jan. 1, 2025 Mar. 18, 2025 June 15, 2025 hc June 30, 2025 Dec. 31, 2025 Debit Credit Situation 2: Splish, Inc

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 1MC
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The following are independent situations. Situation 1: Novak Cosmetics acquired 10% of the 215,000 shares of common stock of Martinez Fashion at a total cost of $12 per share on March 18, 2025. On June 30, Martinez declared and paid $74,400 cash dividends to all stockholders. On December 31, Martinez reported net income of $133,600 for the year. At December 31, the market price of Martinez Fashion was $13 per share. Situation 2: Splish, Inc. obtained significant influence over Seles Corporation by buying 30% of Seles's 28,500 outstanding shares of common stock at a total cost of $9 per share on January 1, 2025. On June 15, Seles declared and paid cash dividends of $35,400 to all stockholders. On December 31, Seles reported a net income of $91,800 for the year. Prepare all necessary journal entries in 2025 for both situations. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Account Titles and Explanation Date Situation 1: Novak Cosmetics Jan. 1, 2025 Mar. 18, 2025 June 15, 2025 hc June 30, 2025 Dec. 31, 2025 Debit Credit
Transcribed Image Text:The following are independent situations. Situation 1: Novak Cosmetics acquired 10% of the 215,000 shares of common stock of Martinez Fashion at a total cost of $12 per share on March 18, 2025. On June 30, Martinez declared and paid $74,400 cash dividends to all stockholders. On December 31, Martinez reported net income of $133,600 for the year. At December 31, the market price of Martinez Fashion was $13 per share. Situation 2: Splish, Inc. obtained significant influence over Seles Corporation by buying 30% of Seles's 28,500 outstanding shares of common stock at a total cost of $9 per share on January 1, 2025. On June 15, Seles declared and paid cash dividends of $35,400 to all stockholders. On December 31, Seles reported a net income of $91,800 for the year. Prepare all necessary journal entries in 2025 for both situations. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Account Titles and Explanation Date Situation 1: Novak Cosmetics Jan. 1, 2025 Mar. 18, 2025 June 15, 2025 hc June 30, 2025 Dec. 31, 2025 Debit Credit
Situation 2: Splish, Inc
Transcribed Image Text:Situation 2: Splish, Inc
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