Question 2: On 1/1/2019, P Company acquired 80% of Scompany for a price of 160'000 JD cash. The balance sheets forthe companies before acquisition were:P company S companyCash120,00020,000Accounts receivable50,00030,000Notes receivable| 50,000| 25,000 |Inventory40,00035,000Equipment| 60,000 70,000 ||Investments in bonds 100,000Land140,000160,000Total560,000340,000Accounts payableNotes payableBonds Payable40,00010,00070,00010,000| 100,000 | 80,000 |Common stock|Retained earnings150,000150,000200,000 | 90,000Total560,000340,000Required:1- Record eliminating entries.2- Prepare consolidated balance sheet.

Consolidated financial statements are financial of an entity with multiple divisions or…

Question 2: On 1/1/2019, P Company acquired 80% of S company for a price of 160'000 JD cash. The balance sheets for the companies before acquisition were: |P company S company Cash 120,000 50,000 20,000 Accounts receivable 30,000 Notes receivable | 50,000 | 25,000 | Inventory 40,000 35,000 Equipment Investments in bonds 100,000 Land | 60,000 70,000| 140,000 160,000 Total 560,000 340,000 Accounts payable Notes payable Bonds Payable 40,000 10,000 70,000 10,000 | 100,000 | 80,000 | Common stock 150,000 150,000 Retained earnings 200,000 90,000 Total 560,000 340,000 Required: 1- Record eliminating entries. 2- Prepare consolidated balance sheet.

Question 2: On 1/1/2019, P Company acquired 80% of S company for a price of 160'000 JD cash. The balance sheets for the companies before acquisition were: |P company S company Cash 120,000 50,000 20,000 Accounts receivable 30,000 Notes receivable | 50,000 | 25,000 | Inventory 40,000 35,000 Equipment Investments in bonds 100,000 Land | 60,000 70,000| 140,000 160,000 Total 560,000 340,000 Accounts payable Notes payable Bonds Payable 40,000 10,000 70,000 10,000 | 100,000 | 80,000 | Common stock 150,000 150,000 Retained earnings 200,000 90,000 Total 560,000 340,000 Required: 1- Record eliminating entries. 2- Prepare consolidated balance sheet.

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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