Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity. Which of the given companies S or P is parent company.

Question

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Answer 1

Question

Chapter 8, Problem 8.17P

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Which of the given companies S or P is parent company.

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Percentage of owner ship parent P holds in subsidiary S.

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when 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.

To determine

a. Will income to non-controlling interest increase or decrease

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when 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

To determine

b. Elimination entry for consolidation worksheet

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Requirement 4

Preparation of elimination entry for consolidation worksheet on December 31 20X8.

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Define and differentiate between capital expenditure and revenue expenditure. Why is it important for businesses to classify these correctly in financial statements? Support your explanation with at least one example for each type of expenditure.

Answer 2

Question

Chapter 8, Problem 8.17P

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Which of the given companies S or P is parent company.

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Percentage of owner ship parent P holds in subsidiary S.

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when 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.

To determine

a. Will income to non-controlling interest increase or decrease

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when 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

To determine

b. Elimination entry for consolidation worksheet

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Requirement 4

Preparation of elimination entry for consolidation worksheet on December 31 20X8.

Expert Solution & Answer

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Answer 3

Question

Chapter 8, Problem 8.17P

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Which of the given companies S or P is parent company.

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Percentage of owner ship parent P holds in subsidiary S.

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when 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.

To determine

a. Will income to non-controlling interest increase or decrease

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when 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

To determine

b. Elimination entry for consolidation worksheet

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Requirement 4

Preparation of elimination entry for consolidation worksheet on December 31 20X8.

Expert Solution & Answer

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Answer 4

Question

Chapter 8, Problem 8.17P

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Which of the given companies S or P is parent company.

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Percentage of owner ship parent P holds in subsidiary S.

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when 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.

To determine

a. Will income to non-controlling interest increase or decrease

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when 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

To determine

b. Elimination entry for consolidation worksheet

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Requirement 4

Preparation of elimination entry for consolidation worksheet on December 31 20X8.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem 8.17P

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Which of the given companies S or P is parent company.

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Percentage of owner ship parent P holds in subsidiary S.

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when 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.

To determine

a. Will income to non-controlling interest increase or decrease

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when 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

To determine

b. Elimination entry for consolidation worksheet

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Requirement 4

Preparation of elimination entry for consolidation worksheet on December 31 20X8.

Answer 6

Chapter 8, Problem 8.17P

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Which of the given companies S or P is parent company.

Answer 7

Chapter 8, Problem 8.17P

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Which of the given companies S or P is parent company.

Answer 8

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Percentage of owner ship parent P holds in subsidiary S.

Answer 9

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Percentage of owner ship parent P holds in subsidiary S.

Answer 10

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when 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.

Answer 11

To determine

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when 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.

Answer 12

To determine

a. Will income to non-controlling interest increase or decrease

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when 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

Answer 13

To determine

a. Will income to non-controlling interest increase or decrease

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when 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

Answer 14

To determine

b. Elimination entry for consolidation worksheet

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Requirement 4

Preparation of elimination entry for consolidation worksheet on December 31 20X8.

Answer 15

To determine

b. Elimination entry for consolidation worksheet

Consolidation entry: the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts. Consolidation is the process of combining the financials of subsidiary with financials of parent company. This is typically done when parent holds more than 50 percent of shares of another entity.

Requirement 4

Preparation of elimination entry for consolidation worksheet on December 31 20X8.

Answer 16

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Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 8 - Prob. 8.1Q Ch. 8 - What is meant by a constructive bond retirement in...Ch. 8 - Prob. 8.3Q Ch. 8 - Prob. 8.4Q Ch. 8 - When a parent company sells land to a subsidiary...Ch. 8 - Prob. 8.7Q Ch. 8 - Prob. 8.8Q Ch. 8 - Prob. 8.9Q Ch. 8 - Prob. 8.10Q Ch. 8 - Prob. 8.11Q

Solution Summary: The author explains that the basic consolidation entry removes the investment in parent company stock account and subsidiary’s stockholders equity accounts.

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Chapter 8 Solutions