Polka Corporation acquired 100 percent of Song Companys voting stock on January 1, 20X4, at underlying book

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Polka Corporation acquired 100 percent of Song Company’s voting stock on January 1, 20X4, at underlying book value. Polka uses the equity method in accounting for its ownership of Song. On December 31, 20X4, the trial balances of the two companies are as follows:

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Required

a. Give all consolidation entries required on December 31, 20X4, to prepare consolidated financial statements.

b. Prepare a three-part consolidation worksheet as of December 31, 20X4.

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Related Book For  book-img-for-question

Advanced Financial Accounting

ISBN: 9781265042615

13th International Edition

Authors: Theodore E. Christensen, David M. Cottrell, Cassy Budd

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