Question: Please answer correct, its my request, its a very important question for me Plaza Corporation purchased 70 percent of Square Company's voting common stock on
Please answer correct, its my request, its a very important question for me

Plaza Corporation purchased 70 percent of Square Company's voting common stock on January 1, 20X5, for $299,600. On that date, the noncontrolling interest had a fair value of $128,400 and the book value of Square's net assets was $392,000. The book values and fair values of Square's assets and liabilities were equal except for land that had a fair value $14,000 higher than book value. The amount attributed to goodwill as a result of the acquisition is not amortized and has not been impaired. PLAZA CORPORATION AND SQUARE COMPANY Trial Balance Data December 31, 20x9 Plaza Corporation Square Company Item Debit Credit Debit Credit Cash and Receivables $ 93, 300 $ 97, 0Ge Inventory 206, 000 110, 090 Land, Buildings, & Equipment (net) 278,000 258, 090 Investment in Square Company 302, 508 Cost of Goods & Services 196, 090 146, 090 Depreciation Expense 23,000 13, 060 Dividends Declared 18,909 4, 090 Sales & Service Revenue $ 313,000 $213,000 Income from Square Company 45, 908 Accounts Payable 51,090 25,900 Common Stock 198, 090 162, 090 Retained Earnings 508,900 228,000 Total $1, 116, 808 $1, 116, 808 $628, 090 $628,000 On January 1, 20X9, Plaza's inventory contained $34,000 of unrealized intercompany profits recorded by Square. Square's inventory on that date contained $15,000 of unrealized intercompany profits recorded on Plaza's books. Both companies sold their ending 20X8 inventories to unrelated companies in 20X9. Required: a. Prepare all consolidation entries needed to complete a consolidation worksheet as of December 31, 20XS for a transaction/event, select "No journal entry required" in the first account field.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
