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
Related Video
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
Students also viewed these Accounting questions
-
A Starbucks franchisee purchased a coffee drink machine on January 1, 2011, for $44,000. The expected useful life is ten years or 100,000 drinks. In 2010, 3,000 drinks were sold, and in 2011, 14,000...
-
Use the standard price and cost data provided in Exercise 15-3. Assume that the actual sales price is $7.65 per unit and that the actual variable cost is $4.25 per unit. The actual fixed...
-
Use the standard price and cost data provided in Exercise 8-1A. Assume that the actual sales price is $11.76 per unit and that the actual variable cost is $6.90 per unit. The actual fixed...
-
Consider a corporate bond with a 10.5% coupon rate, paid semi-annually, $1000 par value and a current market price of $766.70. It matures in exactly 20 years. What is the yield to maturity (YTM) on...
-
No payments were made on a $3400 loan during its three-year term. What was the annually compounded nominal interest rate on the loan, if the amount owed at the end of the term was $4297.91?
-
Divide -145 by 13 in binary twos complement notation, using 12-bit words. Use the algorithm described in Section 9.3.
-
When is the best time to gather requirements about a product?
-
As the manager of Margarita Mexican Restaurant, you must deal with a variety of business transactions. Provide an explanation for the following transactions: a. Debit Equipment and credit Cash. b....
-
Orca Industries Below are the two most recent balance sheets and most recent income statement for Orca Industries. The company has an effective tax rate of 3 0 % . Balance Sheet Year 1 Year 0 Assets:...
-
Based on a 2018 study, the average elapsed time between when a user navigates to a website on a mobile device until its main content is available was 14.6 seconds. This is more than a 20% increase...
-
On January 1, 2011, Pace Company purchased 250,000 shares of common stock directly from its subsidiary, Sime Company, for $1.50 per share. Noncontrolling stockholders elected not to participate in...
-
Padilla Company acquired 80% of the outstanding common stock of Skon Company on January 1, 2009, for $132,000. At the date of purchase, Skon Company had a balance in its $2 par value common stock...
-
Apply the full White test for heteroskedasticity [see equation (8.19)] to equation (8.18). Using the chi-square form of the statistic, obtain the p-value. What do you conclude?
-
The most accurate statement based on the information provided is: "Lionel isn't required to sign his family returns because he does not charge for those, but he must sign any returns he prepares for...
-
Image caption Sibling Company Issued $670,000 par value, 10-year bonds at 105 on January 1, 20X3, which Mega Corporation purchased. The coupon rate on the bonds is 9 percent. Interest payments are...
-
Identify three to five factors (with cost categories) that contribute to the cost of quality. Explain how these factors are in place in a military organization? If unable to explain, how would you...
-
Outline project characteristics that align well with an agile project management approach and those characteristics that align with the traditional project management approach. Briefly provide an...
-
The project managers leadership has been identified as one of the most important critical success factors (CSFs) in project management? What do you think is the most appropriate leadership style to...
-
Using the parameters in the header of Table 5.1, except for the drift, and analyze the OTM call trade (85 strike) for various values of drift; for example = 0.02, = 0.04, and = 0.06. Data given in...
-
The following data are supplied for the common stocks of Nikola Corporation, Tesla, Inc. and General Motors: Nikola Corp (NKLA) Tesla Inc. (TSLA) Close Price ($) Close Price ($) 67.53 30.00 40.81...
-
Find the inverse transforms of the following functions: (a) \(F_{1}(s)=\frac{(s+10)(s+100)(s+100000)}{(s+1)(s+1000)(s+10000)}\) (b) \(F_{2}(s)=\frac{(s+1000)(s+100000)}{(s+10000)^{2}}\)
-
Pet acquired 80 percent of the common stock of Sul for $4,000,000 on January 2, 2011, when the stockholders' equity of Sul consisted of 5,000,000 euros capital stock and 2,000,000 euros retained...
-
Par of Chicago acquired all the outstanding capital stock of Sar of London on January 1, 2011, for $1,200,000. The exchange rate for British pounds was $1.60 and Sar's stockholders' equity was...
-
Phi, a U.S. firm, acquired 100 percent of Stu's outstanding stock at book value on January 1, 2011, for $112,000. Stu is a New Zealand company, and its functional currency is the U.S. dollar. The...
-
Give the worst-case Big O running time of this code and explain in detail how you arrived at this answer, assuming an ArrayList is passed. public static void f1( List 1st) { int i=0; while (i
-
Create a java program that will accept an integer and character. If the user input 'A', compute and display the sum of 10 integers else display "Invalid Character". run: Enter a letter: a Enter a...
-
Give the worst-case Big O running time of this code and explain in detail how you arrived at this answer. for(int j = 0; j < numItems; j++) { int i = numItems; while (i > 0) = i i 3; // integer...
Study smarter with the SolutionInn App