Hatcher Cosmetics acquired 10 percent of the 204,200 shares of common stock of Ramirez Fashion at a net cost of $15 per share on March 18, 2012. On June 30, Ramirez declared and paid a $76,400 cash dividend. On December 31, Ramirez reported total income of $128,600 for the year. At December 31, the market price of Ramirez Fashion was $17 per share. The securities are categorized as available-for-sale.
Holmes, Inc. obtained important affect over Nadal Corporation by buying 26% of Nadal's 32,500 outstanding shares of common stock at a net cost of $11 per share on January 1, 2012. On June 15, Nadal declared and paid a cash dividend of $39,100. On December 31, Nadal reported a total income of $90,800 for the year.
Make all essential journal entries in 2012 for both conditions.