Exercise 16-8 Your answer is partially correct. Try again. Presented below are t

Question

Exercise 16-8 Your answer is partially correct. Try again. Presented below are two independent situations. (a) Gambino Cosmetics acquired 15% of the 248,000 shares of common stock of Nevins Fashion at a total cost of $11 per share on March 18, 2017. On June 30, Nevins declared and paid a $63,900 dividend. On December 31, Nevins b Kanza, Inc., obtained significant influence over Ro an Corporation by buying 30% o Rogan's 28,600 outstanding shares o common stock at a total cost o $6 per share on January 1 2017 On June 15 Rogan declared nd paid a cash reported net income of $114,200 for the year. At December 31, the market price of Nevins Fashion was $13 per share. The stock is classified as available-for-sale dividend of S36,100. On December 31, Rogan reported a net income of S78,100 for the year. Prepare all the necessary journal entries for 2017 fo (a) Gmbio Cusmetics and (b Kanza, Inc. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is reguired, select "No entry" for the account titles and enter 0 for the amounts.) Datc Account Titles and Explanation tork Tvestment une 1Cashl dend Revenu Valu Adjust merit-Avail,ble-for-Sal nrealizcd Gain an. 11Stock Investmen Dividend Revenue Debt Lnvestrients venue from Stock Investment

Explanation / Answer

18-Mar Stock investments 409200 Cash 409200 248000*11*15% 30-Jun Cash 9585 Dividend revenue 9585 63500*15% 31-Dec Fair Value Adjustment available for sale 74400 Unrealised gain or loss equity 74400 (13-11)*37200 01-Jan Stock Investment 51480 Cash 51480 28600*30%*6 15-Jun Cash 10920 Stock Investment 10920 36400*30% 31-Dec Stock Investment 23430 Revenue from investment 23430 78100*30%

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