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Stage Compony operates on a calendsr - year basis, reporting its results of operations quarterly. For the first quarter of 2 0 X 1 ,
Stage Compony operates on a calendsryear basis, reporting its results of operations quarterly. For the first quarter of X Stage
reported sales of $ and operating expenses of $ and paid dividends of $ On April X Porachute Theaters
Inc. acquired percent of Stage's common stock for $ At that date, the fair volue of the noncontrolling interest wos $
and Stage had outstanding shares of $ par common stock, originally issued at $ per share. The differential is related to
goodwill. On December X the mansgement of Parachute Thesters reviewed the amount attributed to goodwill as a result of its
purchose of Stage common stock and concluded that goodwill was not impaired.
Stage's retained earnings statement for the full year appears as follows:
Retained Earnings, January x $ ee
Net Incone ede
Dividends eee
Porachute Theaters accounts for its investment in Stage using the equity method.
Required:
a Present all entries that Parachute Theaters would have recorded in accounting for its investment in Stage during X
b Present all consolidation entries needed in a worksheet to prepare a complete set of consolidated financial statements for the year
Answer is complete but not entirely correct.
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Present all consolidation entries needed in a worksheet to prepare a complete set of consolidated financial statements for the
year
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