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Question What is the elimination enteries . What are journal enteries

anuary 1, 2015 100% of the outstanding stock of solo company was purchased by plato corporation. for 3,300,000 At this time the book vlaue of salo net assets equaled 3,000,000 The excess was attributal to equipement with a 10 year life. Throught 2015 sales to Plato Corporation made up 30% of Solo Revenue and produced 25% gross profit rate . At year end

.Plato Corporation had sold 250,00 of the goods purchased from solo company and still owe solo 30,000 None of the solo products were in plato January 1,2015 beginning inventory

I could not paste in the worksheet .

Tr = trial balance

P=plato

S= solos

CS = consolidate balance sheet

Elimination entry IA El A CY1 D a is

Cash trial balnace for tr forp 735,000 tr for s=370,000 cs =1,105,000

Accounts receivable tr for p 400,000 tr for s 365,000 IA 30,000 credit cs 735,000

Inventory tr for p 600,000 tr for s 275,000 . EI credit 12,500 cs 862,500

Property Plant equipment tr for p 4,000,000 tr for s 2,300,000 d is a debit 300,000 a is credit 30,000 cs 6,570,000

Investment in Solo Company p for tr 3,510,000 tr for s na . cy1 210,000 credit

Accounts payable p for tr -35,00 . s for tr -100,000 . IA is debit 30,000 cs -105,000

Common stock (10 par) p for tr -1,000,000 tr for s na . cs -1,000,000

Paid in capital in excess of par plato tr for p 1,500,000 cs -1,500,000

Retained earnings tr for plato -5,500,000 . Control retained earning -5,500.000

commons stock (10 par) solo tiral for s -400,000 El debit 400,000

Paid-In Capital in Excess of ParSolo .. tr -200,000 El 200,000 debit

Retained EarningsSolo . tr -2,400,000 . el debit 2,400,000

Solo . p tr -12,000,000 s for tr 1,000,000 IS 300,000 debit consolidated income statment -12,700,000

Cost of good sold p tr 7,000,000 s for tr EI 12,500 debit . IS 300,000 credit cosolidate income statement 7,462,500

Other Expenses p for tr 4,000,000 . s for tr 40,000 A 30,000 for debit consolidate income statement 4,070,000

Subsidiary Income tr for p -210,000 . cy1 is 210,000debit

went over this in class . Went went over elimantaion journal enteries . This what looking for