Concept explainers
Subsidiary stock dividends:the dividends payable on shares of the subsidiary common stock require slight changes in the consolidation entries used in preparing consolidated financial statements. Because stock dividends are issued proportionally to all common stockholders, the relative interest of controlling and non-controlling does not change as a result of stock dividends.
In the preparation of consolidated financial statements for the period of issue, dividends by subsidiary should be eliminated along with the increased common stock and interest additional paid-in capital, if any. As only parent’s dividends are viewed as dividends of the consolidated entity.
The consolidation entries required to prepare consolidated

Want to see the full answer?
Check out a sample textbook solution
Chapter 9 Solutions
ADVANCED FIN. ACCT.(LL)-W/CONNECT
- Please explain the solution to this general accounting problem with accurate principles.arrow_forwardNeed answer general accounting questionarrow_forwardHalle Company disposed of an asset at the end of the sixth year of its estimated life for $12,500 cash. The asset's life was originally estimated to be 9 years. The original cost was $63,000 with an estimated residual value of $6,300. The asset was being depreciated using the straight-line method. What was the gain or loss on the disposal?arrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeAccounting (Text Only)AccountingISBN:9781285743615Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningCorporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning



