Use the same data provided in Exercise 8-6, with the exception that Pace Company purchased the additional
Question:
Use the same data provided in Exercise 8-6, with the exception that Pace Company purchased the additional shares from Sime Company on January 1, 2011, at a price of $1.30 per share rather than $1.50.
Required:
A. Prepare the journal entry on Pace Company’s books to record the purchase of the additional shares on January 1, 2011.
B. Prepare the eliminating entries needed for the preparation of a consolidated statements workpaper on December 31, 2011.
Step by Step Answer:
Part A Investment in Sime Company 325000 Cash 130 x 250000 325000 Part B Dividend Income 95 x 30000 ...View the full answer
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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