On December 31, 2020, Splish Company purchased a controlling interest in Novak Company for $1,320,000. The consolidated balance sheet on December 31, 2020 reported noncontrolling interest in Novak Company of $330,000 On the date of acquisition, the stockholders' equity section of Novak Company's balance sheet was as follows: Common stock Other contributed capital Retained earnings Total (a) (b) $585,000 435,000 Common Stock-Splish 410,000 Prepare the investment elimination entry made to prepare a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary land. Creat occount titles are outomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries) $1,450,000 Account Titles and Explanation Retained Earnings-Splish Investment in Splish Company Other Contributed Capital-Splish Debit 1320000 Credit 585000 435000

On December 31, 2020, Splish Company purchased a controlling interest in Novak Company for $1,320,000. The consolidated balance sheet on December 31, 2020 reported noncontrolling interest in Novak Company of $330,000 On the date of acquisition, the stockholders' equity section of Novak Company's balance sheet was as follows: Common stock Other contributed capital Retained earnings Total (a) (b) $585,000 435,000 Common Stock-Splish 410,000 Prepare the investment elimination entry made to prepare a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary land. Creat occount titles are outomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries) $1,450,000 Account Titles and Explanation Retained Earnings-Splish Investment in Splish Company Other Contributed Capital-Splish Debit 1320000 Credit 585000 435000

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Description: On December 31, 2020, Splish Company purchased a controlling interest in Novak Company for $1,320,000. The consolidated balance sheet on December 31, 2020 reported noncontrolling interest in Novak Company of $330,000.On the date of acquisition, the

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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On December 31, 2020, Splish Company purchased a controlling interest in Novak Company for $1,320,000. The consolidated balance sheet on December 31, 2020 reported noncontrolling interest in Novak Company of $330,000.
On the date of acquisition, the stockholders' equity section of Novak Company's balance sheet was as follows:
Common stock
Other contributed capital
Retained earnings
Total
(a)
(b)
$585,000
435,000
Common Stock - Splish
410,000
Prepare the investment elimination entry made to prepare a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary land. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry"
for the account titles and enter O for the amounts. List all debit entries before credit entries.)
$1,430,000
Account Titles and Explanation
Investment in Splish Company
Retained Earnings - Splish
Other Contributed Capital - Splish
Debit
1320000
Credit
585000
435000
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QUESTION On December 31, 2020, P Company purchased a controlling interest in S. Company for $1.060,000. The consolidated balance sheet on December 31, 2020 reported noncontrolling interest in S Company of $265,000. On the date of acquisition, the stockholders' equity section of S Company's balance sheet was as follows: Common stock Other contributed capital Retained earnings Total Noncontrolling Interest Percentage is: $520,000 $380,000 Required: 1. Compute the noncontrolling interest percentage on December 31, 2020. Otsek S $280,000 $1,180,000 2. Prepare the investment elimination entry made to prepare a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary PP&E. Debit Credit 7 points