Presented below are two independent situations.
1. Guo Cosmetics acquired 10% of the 200000 shares of common stock of Chy Fashion at a total cost of $12 per share on March 18 2017. On June 30 Chy declared and paid a $50000 dividend. On December 31 Chy reported net income of $110000 for the year. At December 31 the market price of Chy Fashion was $15 per share. The stock is classified as available-for-sale.
2. Liptin Inc. obtained significant influence over Blurr Corporation by buying 25% of Blurr 50000 outstanding shares of common stock at a total cost of $7 per share on January 1 2017. On June 15 Blurr declared and paid a cash dividend of $40000. On December 31 Blurr reported a net income of $90000 for the year.
Instructions
Prepare all the necessary journal entries for 2014 for (a) Guo Cosmetics and (b) Liptin Inc.

Question

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The Answer of Presented below are two independent situations.
1. Guo Cosmetics acquired 10% of the 200000 shares of common stock of Chy Fashion at a total cost of $12 per share on March 18 2017. On June 30 Chy declared and paid a $50000 dividend. On December 31 Chy reported net income of $110000 for the year. At December 31 the market price of Chy Fashion was $15 per share. The stock is classified as available-for-sale.
2. Liptin Inc. obtained significant influence over Blurr Corporation by buying 25% of Blurr 50000 outstanding shares of common stock at a total cost of $7 per share on January 1 2017. On June 15 Blurr declared and paid a cash dividend of $40000. On December 31 Blurr reported a net income of $90000 for the year.
Instructions
Prepare all the necessary journal entries for 2014 for (a) Guo Cosmetics and (b) Liptin Inc.

Presented Below Are Two Independent Situations