Elimination Entries On WorkSheet/ General Journal Entries

This consolidation worksheet was prepared on the date that Kim Company acquired 100% of the outstanding

stock of Normal Company. The amounts in the Consolidated column are correct. You are to determine the

elimination entries that were made when the worksheet was completed.

YOU MUST PROVIDE AN EXPLANATION FOR EACH

ELIMINATION ENTRY. DO NOT "NET" ANY OF THEM. THIS MEANS THAT IN ADDITION TO COMPLETING THE

WORKSHEET, YOU MUST ALSO SUBMIT THE ELIMINATION ENTRIES IN GENERAL JOURNAL FORMAT.

(Please fill in elimination entries on worksheet)

**NO INCOME STATEMENT REQUIRED- No acquisition details and inter company transactions provided**

** Worksheet below is only info provided/neccasary**

			Elimination Entry	Elimination Entry
Balance Sheet	Kim Co	Normal Co	Debits	Credits	Consolidated
Cash	$55,000	$35,000			$90,000
Accounts Receivable	$90,000	$65,000			$145,000
Inventory	$84,000	$80,000			$164,000
Buildings & Equipment	$400,000	$300,000			$640,000
Less: Accumulated Depreciation	$(160,000)	$(75,000)			$(160,000)
Investment in Normal Company Stock	$320,000
Investment in Normal Company Bonds	$50,000
Goodwill					$20,000
Total Assets	$839,000	$405,000			$899,000
Accounts Payable	$50,000	$20,000			$60,000
Bonds Payable	$200,000	$100,000			$250,000
Common Stock	$300,000	$150,000			$300,000
Capital in Excess of Par		$140,000
Retained Earnings	$289,000	$(5,000)			$289,000
Total Liabilities & Equity	$839,000	$405,000			$899,000