Question: Use the same data provided in Exercise 8-6, with the exception that Pace Company purchased the additional shares from Sime Company on January 1, 2011,

Use the same data provided in Exercise 8-6, with the exception that Pace Company purchased the additional shares from Sime Company on January 1, 2011, at a price of $1.30 per share rather than $1.50.

Required:

A. Prepare the journal entry on Pace Company’s books to record the purchase of the additional shares on January 1, 2011.

B. Prepare the eliminating entries needed for the preparation of a consolidated statements workpaper on December 31, 2011.

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Part A Investment in Sime Company 325000 Cash 130 x 250000 325000 Part B Dividend Income 95 x 30000 ... View full answer

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