Situation 1:Swifty Cosmetics acquired 10% of the 189,000 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 $77,300cash dividends to all stockholders. On December 31,Martinez reported net income of $122,300 for the year. At December 31 the market price of Martinez Fashion was $13per share.
Situation 2
Nash, Inc. obtained significant influence over Seles Corporation by buying 30%of Seles's 32,100 outstanding shares of common stock at a total cost of9$9 per share on January 1,2025 .On June 15
Seles declared and paid cash dividends of $32,700to all stockholders. On Decembe 31, Seles reported a net income of $78,800 for the year.
Prepare all necessary journal entries in 025 for both situations. (List all debit entries before credlit 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.)
Date Account Titles and Explanation Debit credit
Situation 1 Swifty Cosmetic