The stockholders equity section of Veritas Corporations balance sheet appeared as follows on December 31: Common stock,

Question:

The stockholders’ equity section of Veritas Corporation’s balance sheet appeared as follows on December 31:

Common stock, $10 par value, 40,000 shares

authorized and issued......................................................$400,000

Retained earnings.................................................................48,000

Total stockholders’ equity................................................$448,000

Midas Manufacturing Company owns 80 percent of Veritas’s voting stock and paid $11.20 per share. In journal form, prepare the entry (including minority interest) to eliminate Midas’ investment and Veritas’s stockholders’ equity that would appear on the work sheet used in preparing the consolidated balance sheet for the two firms.

Balance Sheet
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...