Question
Elltol Company Ingrad Company Balance Sheet Balance Sheet January 1, 2X13 January 1, 2X13 Cash $ 40 Cash $120 Net Fixed Assets 90 Net Fixed
Elltol Company Ingrad Company
Balance Sheet Balance Sheet
January 1, 2X13 January 1, 2X13
Cash $ 40 Cash $120
Net Fixed Assets 90 Net Fixed Assets 130
Total Assets $130 Total Assets $250
Accounts Payable $ 20 Accounts Payable $ 30
Long-term Bonds Payable 60 Long-term Bonds Payable 100
Stockholders' Equity 50 Stockholders' Equity 120
Total Liab. & Total Liab. &
Stockholders' Equity $130 Stockholders' Equity $250
On January 1, 2X13, Ingrad Company acquired 100% of the outstanding shares of Elltol Company for $50 in cash. During 2X13, Elltol Company had net income of $10, and Ingrad Company had net income of $25. All net income for both companies is in the form of additional cash.
Prepare the following:
- The journal entry necessary for Ingrad Company on January 1, 2X13.
- The journal entry necessary for Elltol Company on January 1, 2X13.
- The consolidated balance sheet immediately after the acquisition.
- The one elimination entry necessary on December 31, 2X13, assuming none of the income for either company resulted from intercompany sales.
- The consolidated balance sheet at December 31, 2X13.
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