Balance Sheet for Dex Company and Ed Company on December 31, 2023 are as follows:   Dex Company Ed Company Cash P850,000 P75,000 Other Assets 2,200,000 425,000 Total Assets P3,050,000 P500,000 Liabilities P1,200,000 P100,000 Common Stock, P50 par 2,000,000 - Common Stock, P10 par - 250,000 Additional Paid-in Capital 500,000 - Retained Earnings (600,000) 150,000 Total Liabilities and Equity P3,050,000 P500,000   On this date, Dex Company acquired 80% of the stock of Ed Company.   Instructions: Prepare a consolidated balance sheet and the eliminating entries as of December 31, 2023, under each set of conditions listed below. Subsidiary stock is acquired by exchanging 5,000 shares of Dex Company stock. The investment is recorded at the par value of the stocks issued.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Balance Sheet for Dex Company and Ed Company on December 31, 2023 are as follows:

 

Dex Company

Ed Company

Cash

P850,000

P75,000

Other Assets

2,200,000

425,000

Total Assets

P3,050,000

P500,000

Liabilities

P1,200,000

P100,000

Common Stock, P50 par

2,000,000

-

Common Stock, P10 par

-

250,000

Additional Paid-in Capital

500,000

-

Retained Earnings

(600,000)

150,000

Total Liabilities and Equity

P3,050,000

P500,000

 

On this date, Dex Company acquired 80% of the stock of Ed Company.

 

Instructions: Prepare a consolidated balance sheet and the eliminating entries as of December 31, 2023, under each set of conditions listed below.

  1. Subsidiary stock is acquired by exchanging 5,000 shares of Dex Company stock. The investment is recorded at the par value of the stocks issued.
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