On June 10, 20X8, Game Corporation acquired 60 percent of

On June 10, 20X8, Game Corporation acquired 60 percent of Amber Company’s common stock. The fair value of the noncontrolling interest was $32,800 on that date. Summarized balance sheet data for the two companies immediately after the stock purchase are as follows:


On June 10, 20X8, Game Corporation acquired 60 percent of



Required
a. Give the elimination entries required to prepare a consolidated balance sheet immediately after the purchase of Amber Company shares.
b. Explain how elimination entries differ from other types of journal entries recorded in the normal course ofbusiness.

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...