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Elimination entries and consolidated balance sheet The following are the balance sheets for Plate and Salad immediately prior to Plate s September 1 , 2
Elimination entries and consolidated balance sheet
The following are the balance sheets for Plate and Salad immediately prior to Plates September X acquisition of Salad:
Plate Salad
Assets
Cash $ $
Accounts receivable
Inventory
Land
Bldg & equip. net
Totalassets $ $
Liabilities & equity
Accounts payable
Bonds payable
Common stock & APIC
Retained earnings
Totalliabilities & equity
Consider the following cases:
Case
Plate buys of Salads common stock for $ cash. The fair value of Salads assets and liabilities equals their book value.
Case
Plate buys of Salads common stock for $ cash. The fair value of Salads land is $ and of its buildings and equipment is $ All other fair values equal book values.
Required:
Question : Prepare the September X journal entry on Plates books to record the acquisition of Salad.
Answer :
Question : Prepare the elimination entries needed to prepare a consolidated balance sheet immediately after the acquisition.
Answer :
Question : Prepare the consolidated balance sheet immediately after the acquisition.
Answer :
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