1. Penn acquired a 90% interest in Skelly on January 1 for $50,000 when Skelly's stockholders'...

 

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1. Penn acquired a 90% interest in Skelly on January 1 for $50,000 when Skelly's stockholders' equity was $40,000 and Retained Earnings 10,000. a. Journal entry b. How much the minority interest? During the year Skelly get the next profit 20,000 and pay the dividend of 15,000. a. How much the investment of Penn in Skell by year end? b. How much the minority interest by year end? 1. Penn acquired a 90% interest in Skelly on January 1 for $50,000 when Skelly's stockholders' equity was $40,000 and Retained Earnings 10,000. a. Journal entry b. How much the minority interest? During the year Skelly get the next profit 20,000 and pay the dividend of 15,000. a. How much the investment of Penn in Skell by year end? b. How much the minority interest by year end?

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Note 1 If dividend is paid out of post acquisition profits then it is credited to Profit and Loss Ac ... View the full answer