Which of the following is not a significant date with respect to dividends?
January 2, 2018
After selling the stocks from the portfolio, what would be the total beta of the remaining stocks in your portfolio?
January 2, 2018

Roscoe Cosmetics acquired 10% of the 200,000 shares of common stock of Ling Fashion at a total cost of $13 per share on March 18, 2002.

Question
Financial Accounting

Presented below are two independent situations.

  1. Roscoe Cosmetics acquired 10% of the 200,000 shares of common stock of Ling Fashion

at a total cost of $13 per share on March 18, 2002. On June 30, Ling declared and paid a

$75,000 dividend. On December 31, Ling reported net income of $122,000 for the year. At

December 31, the market price of Ling Fashion was $14 per share. The stock is classified

as available-for-sale.

  1. Juan, Inc., obtained significant influence over Orlando Corporation by buying 30% of Orlando’s

30,000 outstanding shares of common stock at a total cost of $9 per share on January

1, 2002. On June 15, Orlando declared and paid a cash dividend of $35,000. On December

31, Orlando reported a net income of $80,000 for the year.

Instructions

Prepare all the necessary journal entries for 2002 for (a) Roscoe Cosmetics and (b) Juan,

Inc.

 

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