On January 1, 2014, Patel Corporation issued its stock with a fair value of $105,000 for...

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On January 1, 2014, Patel Corporation issued its stock with a fair value of $105,000 for 70% of the outstanding common stock of Summer Company, which became a subsidiary of Patel. The fair value of the noncontrolling interest was $45,000 on January 1, 2014. Differences between book value and fair value of the net identifiable assets of Summer Company on January 1, 2014, were limited to the following: (1) Copyrights Long-term debt Book Value $47.000 $8,000 Fair Value $43.300 $7,200 Prepare the working paper entries (in journal entry format) for Patel Corporation and subsidiary on January 1, 2014. (ii) Cash Investments in Summer Copyrights Goodwill Total Complete the following working paper for consolidated balance sheet of Patel Corporation and subsidiary. Working paper for consolidated balance sheet on date of business combination, January 1, 2014 Total Long-term Debt Common Stock Add. Paid -in Capital Retained Earnings Noncontrolling Interest Patel 300,000 105,000 395000 800,000 20,000 200,000 230,000 350,000 800,000 Summer Adjustements & Eliminations Debits Credits Consolidated On January 1, 2014, Patel Corporation issued its stock with a fair value of $105,000 for 70% of the outstanding common stock of Summer Company, which became a subsidiary of Patel. The fair value of the noncontrolling interest was $45,000 on January 1, 2014. Differences between book value and fair value of the net identifiable assets of Summer Company on January 1, 2014, were limited to the following: (1) Copyrights Long-term debt Book Value $47.000 $8,000 Fair Value $43.300 $7,200 Prepare the working paper entries (in journal entry format) for Patel Corporation and subsidiary on January 1, 2014. (ii) Cash Investments in Summer Copyrights Goodwill Total Complete the following working paper for consolidated balance sheet of Patel Corporation and subsidiary. Working paper for consolidated balance sheet on date of business combination, January 1, 2014 Total Long-term Debt Common Stock Add. Paid -in Capital Retained Earnings Noncontrolling Interest Patel 300,000 105,000 395000 800,000 20,000 200,000 230,000 350,000 800,000 Summer Adjustements & Eliminations Debits Credits Consolidated

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i Journal Entries on January 1 2014 To record the acquisition of Summer Company by Patel Cor... View the full answer