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1. Pea Company acquired 100 percent of Soup Company's outstanding common stock for $ 400 on January 1, 2019, when the book value of Soup's
1. Pea Company acquired 100 percent of Soup Company's outstanding common stock for $ 400 on January 1, 2019, when the book value of Soup's net assets was equal to $400. Pea uses the equity method to account for investments. Trial balance data for Pea and Soup as of December 31, 2019, are as follows: Pea Company Soup Company Debit Credit Debit Credit Cash $250 $100 Investment in Soup 550 PP&E 900 600 Cost of Goods Sold 609 300 S&A Expense 450 100 Dividends Declared 100 50 Accounts Payable 300 150 APIC 800 450 Common Stock 2001 50 Retained Earnings 150 -100 Sales 1,200 600 Income from Soup 200 Total $2,850 $2,850 $1,150 $1,150 a. Prepare the journal entries on Pea's books for the acquisition of Soup on January 1, 2019 as well as any normal equity method entries related to the investment in Soup Company during 2019. b. Prepare a consolidation worksheet for 2019 in good form
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