On December 31, 2013, Price Company purchased a controlling interest in Shipley Company. The balance sheet of
Question:
On December 31, 2013, Price Company purchased a controlling interest in Shipley Company. The balance sheet of Price Company and the consolidated balance sheet on December 3, 2013, were as follows:
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On the date of acquisition, the stockholders' equity section of Shipley Company's balance sheet was as follows:
Common stock .......................................... $ 90,000
Other contributed capital .................................. 90,000
Retained earnings ......................................... 56,000
Total ..................................................... $236,000
Required:
A. Prepare the investment elimination entry made to complete a consolidated balance sheet work-paper. Any difference between book value and the value implied by the purchase price relates to subsidiary land.
B. Prepare Shipley Company's balance sheet as it appeared on December 31, 2013.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Part A Part B SHIPLEY COMPANY Balance Sheet December 31 20 1 3 Cash 15900 Accounts Receivable 2200...View the full answer
