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Please help with balance sheet. Thanks. Penny Manufacturing Company acquired 75 percent of Saul Corporation stock at underlying book value. At the date of acquisition,
Please help with balance sheet. Thanks.
Penny Manufacturing Company acquired 75 percent of Saul Corporation stock at underlying book value. At the date of acquisition, the fair value of the noncontrolling interest was equal to 25 percent of Saul's book value. The balance sheets of the two companles for January 1, 20X1, are as follows: On January 2 20X1, Penny purchased an additional 2,500 shares of common stock directly from Saul for $150,000. Required: a. Prepare the consolidation entry needed to complete a consolidated balance sheet worksheet Immediately following the Issuance of additional shares to Penny. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) b. Prepare a consolidated balance sheet worksheet Immedately following the issuance of additional shares to Penny. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entrles are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly. combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) Penny Manufacturing Company acquired 75 percent of Saul Corporation stock at underlying book value. At the date of acquisition, the fair value of the noncontrolling interest was equal to 25 percent of Saul's book value. The balance sheets of the two companles for January 1, 20X1, are as follows: On January 2 20X1, Penny purchased an additional 2,500 shares of common stock directly from Saul for $150,000. Required: a. Prepare the consolidation entry needed to complete a consolidated balance sheet worksheet Immediately following the Issuance of additional shares to Penny. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) b. Prepare a consolidated balance sheet worksheet Immedately following the issuance of additional shares to Penny. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entrles are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly. combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)Step by Step Solution
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