QUESTION 2.On September 5, 2019, Soy Company, the 80%-owned subsidiary of Pro Corporation, declared a cashdividend of$1 a share on its 100,000 outstanding shares of S1 par common stock. The dividend was paidon September 26, 2019. For the fiscal year ended September 30, 2019, the first year of the Pro-Soyaffiliation, 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:$60,000Inventories (first-in, first-out cost)-SoyPlant assets (net) (all depreciable over a 10-vear economic life,$80,000$20,000straight-line method)-SoyDiscount on long-term debt (5-year remaining term)-SoyPrepare journal entries for Pro Corporation on September 5, 26, and 30, 2019, to record its equitymethod of accounting for the operating results of Soy Company. Use the straight-line method ofamortization for discount on long-term debt. Consolidated goodwill was unimpaired as of September30, 2019.

Journal entry A journal entry is a record of the business transactions within the accounting books…

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

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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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

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