Question
On January 1, 2018, Jamison Company purchased 70% of the common stock of Kelly Corporation for $455,000. The non-controlling interest was valued at $195,000. The
On January 1, 2018, Jamison Company purchased 70% of the common stock of Kelly Corporation for $455,000. The non-controlling interest was valued at $195,000. The stockholders equity of both companies is as follows:
| Jamison Co. | Kelly Co. | |
| Common Stock | 300,000 | 200,000 |
| Retained Earnings | 400,000 | 450,000 |
The income and dividend information for both companies for 2018 is listed below.
| Jamison Co. | Kelly Co. | |
| Net Income | 145,000 | 70,000 |
| Dividends | 50,000 | 40,000 |
Directions: Prepare any necessary consolidation entries for 2018.
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Cornerstones of Managerial Accounting
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
2nd Canadian edition
978-0176721237, 978-0176530884
