Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
38) P Company purchased 90% of the common stock of S Company on January 2, 2017 for $900,000. On that date, S Companys stockholders equity
38) P Company purchased 90% of the common stock of S Company on January 2, 2017 for $900,000. On that date, S Companys stockholders equity was as follows: Common stock, $20 par value $400,000 Other contributed capital 100,000 Retained earnings 450,000 During 2017, S Company earned $200,000 and declared a $100,000 dividend. P Company uses the partial equity method to record its investment in S Company. The difference between implied and book value relates to land. Required: Prepared, in general journal form, all eliminating entries for the preparation of a consolidated statements workpaper on December 31, 2017.
38) P Company purchased 90% of the common stock of S Company on January 2, 2017 for $900,000. On that date, S Companys stockholders equity was as follows:
Common stock, $20 par value $400,000
Other contributed capital 100,000
Retained earnings 450,000
During 2017, S Company earned $200,000 and declared a $100,000 dividend. P Company uses the partial equity method to record its investment in S Company. The difference between implied and book value relates to land.
Required:
Prepared, in general journal form, all eliminating entries for the preparation of a consolidated statements workpaper on December 31, 2017.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
