On January 1, 2021, P Company acquired 100% of the outstanding stock shares of S Company...

 

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On January 1, 2021, P Company acquired 100% of the outstanding stock shares of S Company for a cash payment of 8,000. Balance Sheets P Company and S Company Jan 01, 2021 P Company S Company Cash Other Current Assets Equipment (net) Land Total Assets Liabilities Common Stock Other Contributed Capital 10 Par Value Retained Earnings Total Liabilities and Equity 120,000 150,000 100,000 30,000 400,000 60,000 200,000 40,000 100,000 400,000 2,000 5,000 4,000 2,000 13,000 5,000 5,000 1,000 2.000 13,000 Instructions: a)- Record journal entry for investment. b)- Record Eliminating Entries c)- Record the Computation and Allocation of Difference (Between Implied and Book Values) Schedule. d)- Record the Consolidated Balance Sheet On January 1, 2021, P Company acquired 100% of the outstanding stock shares of S Company for a cash payment of 8,000. Balance Sheets P Company and S Company Jan 01, 2021 P Company S Company Cash Other Current Assets Equipment (net) Land Total Assets Liabilities Common Stock Other Contributed Capital 10 Par Value Retained Earnings Total Liabilities and Equity 120,000 150,000 100,000 30,000 400,000 60,000 200,000 40,000 100,000 400,000 2,000 5,000 4,000 2,000 13,000 5,000 5,000 1,000 2.000 13,000 Instructions: a)- Record journal entry for investment. b)- Record Eliminating Entries c)- Record the Computation and Allocation of Difference (Between Implied and Book Values) Schedule. d)- Record the Consolidated Balance Sheet

Answer rating: 100% (QA)

a Journal Entry for Investment in S Company P Companys Books Parent Debit Investment in S Company 100 of S Companys common stock 8000 Credit Cash 8000 ... View the full answer