Presented Below Are Two Independent Situations

question 83

Essay

Presented below are two independent situations.
1. Grand Cosmetics acquired 10% of the 200,000 shares of common stock of Cey Fashion at a total cost of $13 per share on March 18, 2010. On June 30, Cey declared and paid a $60,000 dividend. On December 31, Cey reported net income of $110,000 for the year. At December 31, the market price of Cey Fashion was $15 per share. The stock is classified as available-for-sale.
2. Unruh, Inc., obtained significant influence over Olsen Corporation by buying 25% of Olsen 40,000 outstanding shares of common stock at a total cost of $9 per share on January 1, 2010. On June 15, Olsen declared and paid a cash dividend of $30,000. On December 31, Olsen reported a net income of $80,000 for the year.
Instructions
Prepare all the necessary journal entries for 2010 for (a)Grand Cosmetics and (b) Unruh, Inc.

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Definitions:

Democracy

A form of governance where authority is granted to the populace, who govern either directly or via representatives chosen through fair elections.

Unions

Organizations formed by workers in various sectors aimed at defending their rights, improving working conditions, and negotiating wages and other benefits with employers.

Corporations

Business entities that are legally recognized as individual entities, separate from their owners, with the ability to own assets, borrow money, and be sued in court.

National Union

A labor union that represents workers from across the country in a specific trade or industry.