7 points QUESTION 1 P Company acquired 54,000 shares of the common stock of Company on January 1, 2011, for 1050,000 cash. The stockholders' equity section of Company's balance sheet on that date was as follows: Common stock - $10 par $600,000 value Other contributed capital $80,000 Retained earnings $320,000 Total $1,000,000 On the date of acquisition, S Company owed P Company $10,000 in Accounts Payable The difference between the value implied by the purchase price of the investment and the book value of the not assets acquired relates to subsidiary land, Required: Present, in general journal form, the elimination entries for the preparation of a consolidated balance sheet workpaper on January 1, 2011 ANSWER Jan 1, 2011 Debit Credit Accounts Payable to P Accounts Receivable from ) Debit Credit Common Stocks Other Contributed Capital Retained Earnings- Difference between implied and Book Value Investment in Scompany Noncontrolling Interest nahit Credit Debit Credit Land Difference between Implied and Book Value