stock $110,00C ontributed capital d earnings 45,00C 160,00C 2014, s distributed a dividend -end reported a $160,000 net i d book value relates to subsid nethod to record its investment

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2014, P Company purchased 100% of the common stock of
At that time, s'
4.
s Company
consisted of the following:
for $375,000.
stockholders' equity
Common stock
$110,000
Other contributed capital
Retained earnings
45,000
160,000
During 2014, s distributed a dividend in the amount of $60,000 and
at year-end reported a $160,000 net income.
cost and book value relates to subsidiary land.
equity method to record its investment.
Any difference between
P Company uses the
Required:
A. Prepare on P Company's books journal entries
to
record
the
investment related activities for 2014.
B. Prepare the workpaper eliminating entries
December 31, 2014.
for
a workpaper on
Transcribed Image Text:On January 1, 2014, P Company purchased 100% of the common stock of At that time, s' 4. s Company consisted of the following: for $375,000. stockholders' equity Common stock $110,000 Other contributed capital Retained earnings 45,000 160,000 During 2014, s distributed a dividend in the amount of $60,000 and at year-end reported a $160,000 net income. cost and book value relates to subsidiary land. equity method to record its investment. Any difference between P Company uses the Required: A. Prepare on P Company's books journal entries to record the investment related activities for 2014. B. Prepare the workpaper eliminating entries December 31, 2014. for a workpaper on
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