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I will give thumbs up for the 10 correct journal entries for this one problem ASAP! Thank you! Parent Company obtains 100 percent of Subsidiary
I will give thumbs up for the 10 correct journal entries for this one problem ASAP! Thank you!
Parent Company obtains 100 percent of Subsidiary Company's stock on January 1, 2020. As of that date, Subsidiary has the following trial balance: Debit Credit $50,900 Accounts payable Accounts receivable $ 40,400 Additional paid-in capital 50,000 Buildings (net) (4-year remaining life) 128,000 68,750 Cash and short-term investments Common stock 250,000 Equipment (net) (5-year remaining life) 407,500 Inventory 119,000 Land 82,000 171,500 Long-term liabilities (mature 12/31/23) Retained earnings, 1/1/20 338,850 Supplies 15,600 Totals $861,250 $861,250 During 2020, Subsidiary reported net income of $124,000 while declaring and paying dividends of $16,000. During 2021, Subsidiary reported net income of $164,750 while declaring and paying dividends of $60,000. Assume that Parent Company acquired Subsidiary's common stock for $756,500 in cash. As of January 1, 2020, Subsidiary's land had a fair value of $93,100, buildings had a fair value of $194,800, and its equipment had a fair value of $366,250. Parent uses the equity method for this investment. Prepare consolidation worksheet entries for December 31, 2020, and December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 1 2 3 4 5 6 7 8 9 10 > Prepare entry S Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2020 Record entry Consolidation Worksheet Entries 1 2 3 4 5 6 7 8 9 10 Prepare entry S Note: Enter debits before credits. Date Accounts Debit Credit December 31, 2020 Record entry > Consolidation Worksheet Entries Consolidation Worksheet Entries Consolidation Worksheet Entries Consolidation Worksheet Entries view transaction list Consolidation Worksheet Entries Consolidation Worksheet Entries Consolidation Worksheet Entries Consolidation Worksheet Entries 1 2 3 Prepare entry E for 2021 Note: Enter debits before credits. Date Accounts December 31, 2021 Record entry 4 5 6 7 8 9 10 Debit CreditStep by Step Solution
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