siegfried Corporation issued 4,000 shares of its $10 par value stock with a market value of $60000 to acquire 85 percent ownership of Mead Company on August 31, 20X3. Mead's fair value was determined to be $100,000 on that date. Deal had earlier purchased 15 percent of Mead's shares for $9,000 and used the cost method in accounting for its investment in Mead. Deal also paid appraisal fees of $3,500 and stock issue costs of $2,000 incurred in completing the acquisition of the additional shares.

Required:

Prepare the journal entries to be recorded by Deal in completing the acquisition of the additional shares of Mead. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the gain/loss in the value of Mead Company stock.

Record the acquisition of ownership in Mead Company by the issuance of shares.

Record the payment of appraisal fees and stock issuance costs.

Answer rating: 100% (QA)

Answer Solution Date Particulars Debit Credit Investment in Mead Company Stock 85000 Common ... View the full answer