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What is the basic consolidation entry Parent would use in the consolidation worksheet on December 31, 20X2? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).

What is the basic consolidation entry Parent would use in the consolidation worksheet on December 31, 20X2? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).

FINANCIAL ACCOUNTING
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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first picture is information for the second picture. thank you!!

What is the basic consolidation entry Parent would use in the consolidation worksheet on December 31, 20X2? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
Transcribed Image Text:What is the basic consolidation entry Parent would use in the consolidation worksheet on December 31, 20X2? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
Parent Company acquired 90% of Son Incorporate on January 31, 20X2 in exchange for cash. The book value of Son's individual assets and liabilities approximated their acquisition-date fair values. On the date of acquisition, Son reported the following: Cash $ 350,000 Current Liabilition $ 120,000 100,000 Inventory Plant Asseta (net) Property Total Assets 320,000 500,000 Common Stock Retained Earnings Total Liabilities and Equity 100,000 1,050,000 $1,210,000 $ 1,270,000 During the year Son Incorporate reported $310,000 in net income and declared $15,000 in dividends. Parent Company reported $520,000 in net income and declared $25,000 in dividends. Parent accounts for their investment using the equity method.
Transcribed Image Text:Parent Company acquired 90% of Son Incorporate on January 31, 20X2 in exchange for cash. The book value of Son's individual assets and liabilities approximated their acquisition-date fair values. On the date of acquisition, Son reported the following: Cash $ 350,000 Current Liabilition $ 120,000 100,000 Inventory Plant Asseta (net) Property Total Assets 320,000 500,000 Common Stock Retained Earnings Total Liabilities and Equity 100,000 1,050,000 $1,210,000 $ 1,270,000 During the year Son Incorporate reported $310,000 in net income and declared $15,000 in dividends. Parent Company reported $520,000 in net income and declared $25,000 in dividends. Parent accounts for their investment using the equity method.
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