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$10.000 owed to Plymouth. Plymouth would need to make which Elimination/Consolidation Entry at the date of acquisition in order to prepare consolidated financial statements,

$10.000 owed to Plymouth. Plymouth would need to make which Elimination/Consolidation Entry at the date of acquisition in order to prepare consolidated financial statements,

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Plymouth Corporation purchased 60% of South Sudan Company paying $49,200 cash. The fair value of the NonControlling Interest (NCI) was $32.800 on that date. At the date of acquisition, the Balance Sheet of South Sudan had $20,000 listed for Common Stock and $37,000 for Retained Earnings. At the date of acquisition, the book value of the net assets equaled the fair value of the net assets, except that Inventory was worth $10,000 more than book value and Patents were worth $15,000 more than book value. Also, at the date of acquisition South Sudan had an Accounts Payable of $10.000 owed to Plymouth. Plymouth would need to make which Elimination/Consolidation Entry at the date of acquisition in order to prepare consolidated financial statements, O Debit Investment in South Sudan for $34,200 and NCI in Net Assets of South Sudan for 522,800 and Credit Cash for $57,000 O Debit Cash for $57,000 and Credit Investment in South Sudan for $34.200 and NCI in Net Assets of South Sudan for $22,800 Debit Common Stock for $20,000 and Retained Earnings for $37,000. and Credit Investment in South Sudan for $34,200 and NCI in Not Assets of South Sudan for $22,800. O Debit Common Stock for $20,000 and ained Earnings for $37.000, and Credit Cash for $57,000. O Debit Investment in South Sudan for $34.200 and NCI in Net Assuts of South Sudan for $22,800 and Credit Common Stock for $20,000 and Retained Earnings for $37,000.
Transcribed Image Text:Plymouth Corporation purchased 60% of South Sudan Company paying $49,200 cash. The fair value of the NonControlling Interest (NCI) was $32.800 on that date. At the date of acquisition, the Balance Sheet of South Sudan had $20,000 listed for Common Stock and $37,000 for Retained Earnings. At the date of acquisition, the book value of the net assets equaled the fair value of the net assets, except that Inventory was worth $10,000 more than book value and Patents were worth $15,000 more than book value. Also, at the date of acquisition South Sudan had an Accounts Payable of $10.000 owed to Plymouth. Plymouth would need to make which Elimination/Consolidation Entry at the date of acquisition in order to prepare consolidated financial statements, O Debit Investment in South Sudan for $34,200 and NCI in Net Assets of South Sudan for 522,800 and Credit Cash for $57,000 O Debit Cash for $57,000 and Credit Investment in South Sudan for $34.200 and NCI in Net Assets of South Sudan for $22,800 Debit Common Stock for $20,000 and Retained Earnings for $37,000. and Credit Investment in South Sudan for $34,200 and NCI in Not Assets of South Sudan for $22,800. O Debit Common Stock for $20,000 and ained Earnings for $37.000, and Credit Cash for $57,000. O Debit Investment in South Sudan for $34.200 and NCI in Net Assuts of South Sudan for $22,800 and Credit Common Stock for $20,000 and Retained Earnings for $37,000.
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