a.
Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s
The given companies S or P is parent company.
b.
Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.
Percentage of owner ship parent P holds in subsidiary S
c.
Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.
Amount to be reported without consolidating entry when net income for 20X7 is $70,000.
d
Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.
Increase or decrease in income to the non-controlling interest reported in 20X7 as a result of preceding consolidating entry
e
Consolidation entry: The basic consolidation entry removes the investment in the parent company stock account and subsidiary’s stockholders' equity accounts. Consolidation is the process of combining the financials of a subsidiary with the financials of the parent company. This is typically done when a parent holds more than 50 percent of shares of another entity.
Preparation of elimination entry for consolidation worksheet on December 31 20X8.
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