Kim Corporation acquired 100 percent of Normal Companys outstanding shares on January 1, 20X7. Balance sheet data

Question:

Kim acquired 100 percent of Normal Company€™s outstanding shares on January 1, 20X7. data for the two companies immediately after the purchase follow:

Kim Corporation acquired 100 percent of Normal Company€™s outstanding shares

As indicated in the parent company balance sheet, Kim purchased $50,000 of Normal's bonds from the subsidiary immediately after it acquired the stock. An analysis of intercompany receivables and payables also indicates that the subsidiary owes the parent $10,000. On the date of combination, the book values and fair values of Normal's assets and liabilities were the same.

Required
a. Give all elimination entries needed to prepare a consolidated balance sheet for January 1, 20X7.
b. Complete a consolidated balance sheet worksheet.
c. Prepare a consolidated balance sheet in goodform.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...