financeThese are two independent situations:
1. Eusey Cosmetics acquired 12% of the 300,000 shares of common stock of High Fashion at a total cost of $14 per share on March 18, 2014. On June 30, High declared and paid a$75,000 dividend. On December 31, High reported net income of $244,000 for the year. At December 31, the market price of High Fashion was$16 per share. The stock is classified as available-for-sale.
2. Dickson Inc. obtained significant influence over Kiner Corporation by buying 25% of Kiner’s 30,000 outstanding shares of common stock at a total cost of $11 per share on January 1, 2014. On June 15, Kiner declared and paid a cash dividend of$35,000. On December 31, Kiner reported a net income of $120,000 for the year.
***Instructions***
Prepare all the necessary journal entries for 2014 for (a) Eusey Cosmetics and (b) Dickson Inc. 15th Edition•ISBN: 9780073401805 (8 more)Douglas A. Lind, Samuel A. Wathen, William G. Marchal1,236 solutions
8th Edition•ISBN: 9781305585126 (1 more)N. Gregory Mankiw1,337 solutions
11th Edition•ISBN: 9781337623124Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman1,012 solutions
13th Edition•ISBN: 9781305983038David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams1,692 solutions
