ember 5, 2019, Soy Company, the 80%-owned subsidis of $1 a share on its 100,000 outstanding shares of $1 pa mber 26, 2019. For the fiscal year ended September n, Soy had a net income of $300,000. In addition to g0 he business combination) working paper elimination ( d subsidiary included the following debits: ies (first-in, first-out cost)-Soy sets (net) (all depreciable over a 10-year economic life, ling mothod) Sr
ember 5, 2019, Soy Company, the 80%-owned subsidis of $1 a share on its 100,000 outstanding shares of $1 pa mber 26, 2019. For the fiscal year ended September n, Soy had a net income of $300,000. In addition to g0 he business combination) working paper elimination ( d subsidiary included the following debits: ies (first-in, first-out cost)-Soy sets (net) (all depreciable over a 10-year economic life, ling mothod) Sr
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![QUESTION 2.
On September 5, 2019, Soy Company, the 80%-owned subsidiary of Pro Corporation, declared a cash
dividend of$1 a share on its 100,000 outstanding shares of S1 par common stock. The dividend was paid
on September 26, 2019. For the fiscal year ended September 30, 2019, the first year of the Pro-Soy
affiliation, Soy had a net income of $300,000. In addition to goodwill of S80,000, the September 30, 2002
(date of the business combination) working paper elimination (in journal entry format) for Pro Corpo-
ration and subsidiary included the following debits:
$60,000
Inventories (first-in, first-out cost)-Soy
Plant assets (net) (all depreciable over a 10-vear economic life,
$80,000
$20,000
straight-line method)-Soy
Discount on long-term debt (5-year remaining term)-Soy
Prepare journal entries for Pro Corporation on September 5, 26, and 30, 2019, to record its equity
method of accounting for the operating results of Soy Company. Use the straight-line method of
amortization for discount on long-term debt. Consolidated goodwill was unimpaired as of September
30, 2019.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fffde9c44-2af2-410c-a757-56e67944c94d%2Fbd8ce614-a626-4d3f-9f28-ea6ee11c8ab9%2Fisiccf_processed.png&w=3840&q=75)
Transcribed Image Text:QUESTION 2.
On September 5, 2019, Soy Company, the 80%-owned subsidiary of Pro Corporation, declared a cash
dividend of$1 a share on its 100,000 outstanding shares of S1 par common stock. The dividend was paid
on September 26, 2019. For the fiscal year ended September 30, 2019, the first year of the Pro-Soy
affiliation, Soy had a net income of $300,000. In addition to goodwill of S80,000, the September 30, 2002
(date of the business combination) working paper elimination (in journal entry format) for Pro Corpo-
ration and subsidiary included the following debits:
$60,000
Inventories (first-in, first-out cost)-Soy
Plant assets (net) (all depreciable over a 10-vear economic life,
$80,000
$20,000
straight-line method)-Soy
Discount on long-term debt (5-year remaining term)-Soy
Prepare journal entries for Pro Corporation on September 5, 26, and 30, 2019, to record its equity
method of accounting for the operating results of Soy Company. Use the straight-line method of
amortization for discount on long-term debt. Consolidated goodwill was unimpaired as of September
30, 2019.
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