A2) Hello! I need urgent help with the following accounting question: 1. Cullumber Cosmetics acquired 13% of the 301,200 shares of common stock of Elite Fashion at a total cost of $14 per share on March 18, 2022. On June 30, Elite declared and paid a $70,100 dividend. On December 31, Elite reported net income of $226,500 for the year. At December 31, the market price of Elite Fashion was $15 per share. 2. Bramble Inc. obtained significant influence over Kasey Corporation by buying 25% of Kasey's 32,700 outstanding shares of common stock at a total cost of $10 per share on January 1, 2022. On June 15, Kasey declared and paid a cash dividend of $31,600. On December 31, Kasey reported a net income of $116,000 for the year. Promt is also shared below with addition to numbers. Thank you in advance!
A2) Hello! I need urgent help with the following accounting question: 1. Cullumber Cosmetics acquired 13% of the 301,200 shares of common stock of Elite Fashion at a total cost of $14 per share on March 18, 2022. On June 30, Elite declared and paid a $70,100 dividend. On December 31, Elite reported net income of $226,500 for the year. At December 31, the market price of Elite Fashion was $15 per share. 2. Bramble Inc. obtained significant influence over Kasey Corporation by buying 25% of Kasey's 32,700 outstanding shares of common stock at a total cost of $10 per share on January 1, 2022. On June 15, Kasey declared and paid a cash dividend of $31,600. On December 31, Kasey reported a net income of $116,000 for the year. Promt is also shared below with addition to numbers. Thank you in advance!
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A2) Hello! I need urgent help with the following accounting question:
1. Cullumber Cosmetics acquired 13% of the 301,200 shares of common stock of Elite Fashion at a total cost of $14 per share on March 18, 2022. On June 30, Elite declared and paid a $70,100 dividend. On December 31, Elite reported net income of $226,500 for the year. At December 31, the market price of Elite Fashion was $15 per share.
2. Bramble Inc. obtained significant influence over Kasey Corporation by buying 25% of Kasey's 32,700 outstanding shares of common stock at a total cost of $10 per share on January 1, 2022. On June 15, Kasey declared and paid a cash dividend of $31,600. On December 31, Kasey reported a net income of $116,000 for the year.
Promt is also shared below with addition to numbers. Thank you in advance!
Transcribed Image Text:These are two independent situations:
1. Cullumber Cosmetics acquired 13% of the 301,200 shares of common stock of Elite Fashion at a total cost of $14 per share on
March 18, 2022. On June 30, Elite declared and paid a $70,100 dividend. On December 31, Elite reported net income of
$226,500 for the year. At December 31, the market price of Elite Fashion was $15 per share.
2. Bramble Inc. obtained significant influence over Kasey Corporation by buying 25% of Kasey's 32,700 outstanding shares of
common stock at a total cost of $10 per share on January 1, 2022. On June 15, Kasey declared and paid a cash dividend of
$31,600. On December 31, Kasey reported a net income of $116,000 for the year.
(a)
Prepare all the necessary journal entries for 2022 for Cullumber Cosmetics. (Record journal entries in the order presented in
the problem. 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 O for the amounts.)
Mar. 18
June 30
Dec. 31
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