Presented below are two independent situations:
1. Edelman Inc. acquired 10% of the 500,000 shares of common stock of Schuberger Corporation at a total cost of $11 per share on June 17, 2017. On September 3, Schuberger declared and paid a $160,000 dividend. On December 31, Schuberger reported net income of $550,000 for the year.
2. Wen Corporation obtained significant influence over Hunsaker Company by buying 30% of Hunsaker’s 100,000 outstanding shares of common stock at a cost of $18 per share on January 1, 2017. On May 15, Hunsaker declared and paid a cash dividend of $150,000. On December 31, Hunsaker reported net income of $270,000 for the year.
Prepare all necessary journal entries for 2017 for (a) Edelman and (b) Wen.