Situation 1: Novak CosmeticsMar. 18, 2025June 30, 2025Dec. 31, 2025Situation 2: Splish, IncJan. 1, 2025June 15, 2025Dec. 31, 2025Debt InvestmentsCashcashDividend RevenueFair Value AdjustmentUnrealized Holding Gain or Loss - EquityCommon StockCashCashSales RevenueCommon StockTRevenue from InvestmentIII270200675019300982401532033680270206751930982415323368 Situation 1:Novak Cosmetics acquired 10% of the 193,000 shares of common stock of Martinez Fashion at a total cost of $14 per share on March18, 2025. On June 30, Martinez declared and paid $67,500 cash dividends to all stockholders. On December 31, Martinez reportednet income of $118,700 for the year. At December 31, the market price of Martinez Fashion was $15 per share.Situation 2:Splish, Inc. obtained significant influence over Seles Corporation by buying 40% of Seles's 30,700 outstanding shares of common stockat a total cost of $8 per share on January 1, 2025. On June 15, Seles declared and paid cash dividends of $38,300 to all stockholders.On December 31, Seles reported a net income of $84,200 for the year.Prepare all necessary journal entries in 2025 for both situations. (List all debit entries before credit entries. Credit account titles areautomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles andenter o for the amounts. Record journal entries in the order presented in the problem.)

A journal entry is the act of keeping or making records of any transactions either economic or…

Mar. 18, 2025 June 30, 2025 v Dec. 31, 2025 Situation 2: Splish, Inc Jan. 1, 2025 June 15, 2025 Dec. 31, 2025 Debt Investments Cash cash Dividend Revenue Fair Value Adjustment Unrealized Holding Gain or Loss - Equity Common Stock Cash Cash Sales Revenue Common Stock Revenue from Investment |||||| 270200 6750 19300 98240 15320 33680 2702 67: 193 982 1532 336

Mar. 18, 2025 June 30, 2025 v Dec. 31, 2025 Situation 2: Splish, Inc Jan. 1, 2025 June 15, 2025 Dec. 31, 2025 Debt Investments Cash cash Dividend Revenue Fair Value Adjustment Unrealized Holding Gain or Loss - Equity Common Stock Cash Cash Sales Revenue Common Stock Revenue from Investment |||||| 270200 6750 19300 98240 15320 33680 2702 67: 193 982 1532 336

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 3PA

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