Assume that on January 1, 2015, P Company acquired 90% (9,000 shares) of the stock of S Company for $144,000. What journal entry would P Company make to record the shares of S Company acquired?

The workpaper entry to eliminate S Companys stockholders equity against the investment account is:

Balance Sheet P Company s Compan S56,000 $40,000 Cash 280,000 100,000 Other current assets Plant and equipment 80,000 240,000 Land 80,000 40,000 144,000 Investment in S S 800,000 $ 260,000 Total assets $ 120,000 $ 100,000 Liabilities Common stock 100,000 400,000 ther contributed capital 20,000 80,000 Retained earnin 200,000 40,000 gS Noncontrolling interest Total Liab. and Equity $ 800,000 S 260,000