Consolidation is the process of accounting where books of parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation. To Explain: Journal entry in the books of P company to record the investment in S company and journal entry to record the payment finder’s fine.

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Chapter 1, Problem 1.8E

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Concept Introduction: Consolidation is the process of accounting where books of parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Explain: Journal entry in the books of P company to record the investment in S company and journal entry to record the payment finder’s fine.

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