On January 1, 2014, P Company purchased 100% of the common stock ofAt that time, s'4.s Companyconsisted of the following:for $375,000.stockholders' equityCommon stock$110,000Other contributed capitalRetained earnings45,000160,000During 2014, s distributed a dividend in the amount of $60,000 andat year-end reported a $160,000 net income.cost and book value relates to subsidiary land.equity method to record its investment.Any difference betweenP Company uses theRequired:A. Prepare on P Company's books journal entriestorecordtheinvestment related activities for 2014.B. Prepare the workpaper eliminating entriesDecember 31, 2014.fora workpaper on

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

Answered: stock $110,00C ontributed capital d…

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

Section: Chapter Questions

Problem 1Q

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Question

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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