Paper Company acquired 100 percent of Scissor Companys outstanding common stock for $370,000 on January 1, 20X8,

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Paper Company acquired 100 percent of Scissor Company’s outstanding common stock for $370,000 on January 1, 20X8, when the book value of Scissor’s net assets was equal to $370,000. Paper uses the equity method to account for investments. Trial balance data for Paper and Scissor as of December 31, 20X8, are as follows:


Paper Company acquired 100 percent of Scissor Company’s outstanding common



Required
a. Prepare the journal entries on Paper’s books for the acquisition of Scissor on January 1, 20X8 as well as any normal equity method entry(ies) related to the investment in Scissor Company during 20X8.
b. Prepare a consolidation worksheet for 20X8 in goodform.

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Related Book For  answer-question

Advanced Financial Accounting

ISBN: 978-0078025624

10th edition

Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker

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