On January 2, 2014, Phillips Company purchased 80% of Sanchez Company and 90% of Thomas Company for

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On January 2, 2014, Phillips Company purchased 80% of Sanchez Company and 90% of Thomas Company for $225,000 and $168,000, respectively. Immediately before the acquisitions, the balance sheets of the three companies were as follows:

On January 2, 2014, Phillips Company purchased 80% of Sanchez

The note receivable and interest receivable of Sanchez relate to a loan made to Thomas Company on October 1, 2013. Thomas failed to record the accrued interest expense on the note.


Required:
Prepare a consolidated balance sheet work-paper as of January 2, 2014. Any difference between book value and the value implied by the purchase price relates to subsidiary land?

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...
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Advanced Accounting

ISBN: 978-1119119364

6th edition

Authors: Debra Jeter, Paul Chaney

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