1. • La Perla Cosmetics, Inc. purchased 10% of 200,000 common shares of Nevins Fashion at a total cost of US$13 per share on March 18, 2017. On June 30, Nevins Fashion declared and paid a dividend of US$60,000. On December 31, Nevins Fashion reported net income of US$122,000 for the current year. As of December 31, the market price of Nevins Fashion was US15 per share. The stock is classified as available-for-sale.
   • Kanza, Inc., gained significant influence over Rogan Corporation by purchasing 40% of Rogan Corporation's 30,000 outstanding common shares at a total cost of US$9 per share on January 1, 2017. On June 15, Rogan Corporation declare and pay a cash dividend of US$30,000. As of December 31, Rogan Corporation reported net income of US$80,000 for the current year.
2. Instructions:
   1. Prepare and submit all applicable records required for 2017 for (a) La Perla Cosmetics, Inc. and (b) Kanza, Inc.

Answer rating: 100% (QA)

a La Perla Cosmetics Inc Journal Entries for 2017 1 Purchase of 10 of Nevins Fashion on March 18 201... View the full answer