The following are two independent situations. 1. 2. Pharoah Cosmetics acquired 10% of the 295,000 shares of common stock of Nevins Fashion at a total cost of $11 per share on March 18, 2020. On June 30, Nevins declared and paid a $74,300 dividend. On December 31, Nevins reported net income of $116,500 for the year. At December 31, the market price of Nevins Fashion was $13 per share. Wildhorse, Inc., obtained significant influence over Rogan Corporation by buying 30% of Rogan's 30,000 outstanding shares of common stock at a total cost of $7 per share on January 1, 2020. On June 15, Rogan declared and paid a cash dividend of $31,300. On December 31, Rogan reported a net income of $88,900 for the year. Prepare all the necessary journal entries for 2020 for (a) Pharoah Cosmetics and (b) Wildhorse, 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 required, select "No entry" for the account titles and enter O for the amounts.) (a) (b) Date < < > Account Titles and Explanation Debit Credit
The following are two independent situations. 1. 2. Pharoah Cosmetics acquired 10% of the 295,000 shares of common stock of Nevins Fashion at a total cost of $11 per share on March 18, 2020. On June 30, Nevins declared and paid a $74,300 dividend. On December 31, Nevins reported net income of $116,500 for the year. At December 31, the market price of Nevins Fashion was $13 per share. Wildhorse, Inc., obtained significant influence over Rogan Corporation by buying 30% of Rogan's 30,000 outstanding shares of common stock at a total cost of $7 per share on January 1, 2020. On June 15, Rogan declared and paid a cash dividend of $31,300. On December 31, Rogan reported a net income of $88,900 for the year. Prepare all the necessary journal entries for 2020 for (a) Pharoah Cosmetics and (b) Wildhorse, 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 required, select "No entry" for the account titles and enter O for the amounts.) (a) (b) Date < < > Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following are two independent situations.
1.
2.
Pharoah Cosmetics acquired 10% of the 295,000 shares of common stock of Nevins Fashion at a total cost of $11 per share
on March 18, 2020. On June 30, Nevins declared and paid a $74,300 dividend. On December 31, Nevins reported net
income of $116,500 for the year. At December 31, the market price of Nevins Fashion was $13 per share.
Wildhorse, Inc., obtained significant influence over Rogan Corporation by buying 30% of Rogan's 30,000 outstanding
shares of common stock at a total cost of $7 per share on January 1, 2020. On June 15, Rogan declared and paid a cash
dividend of $31,300. On December 31, Rogan reported a net income of $88,900 for the year.
Prepare all the necessary journal entries for 2020 for (a) Pharoah Cosmetics and (b) Wildhorse, 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 required, select "No entry" for the account titles and enter O for the amounts.)
(a)
(b)
Date
<
<
>
Account Titles and Explanation
Debit
Credit
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