P Inc. acquired 100% of S Inc.â€s outstanding common stock for $ 1,500,000 cash. Divide the cost into its major elements and prepare the consolidation entices as of the acquisition date. Prepare basic elimination entry and excess value reclassification entry from the following information:(2.5 Marks)
Passion Company created Sound Company with a transfer of $ 1,000 cash. During Sound Companyâ€s first year of operation, it generated a net loss of $ 180 and paid no dividend. During Sound Companyâ€s Second year of operation, it generated net income of $ 350 and paid dividend of $ 70. What journal entries would Passion Company make under Cost Method and Equity Method for both of the years? (1.5 Marks)
Petro Company acquires 18% of Santro Companyâ€s Common Stock for $ 250,000 at the beginning of the year but does not gain significant influence over Santro. During the year Santro has net income of $ 75,000 and pays dividend of $ 15,000. Record the necessary transactions in the book of Petro Company applying Cost Method. (1 Mark)
Building & Equipment
Payables & Accruals
Long Term Debt
Additional Paid In Capital
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount! Use Discount Code “Newclient” for a 15% Discount!
NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.
The post 1 p inc acquired 100 of s inc s outstanding common stock for 1 500 000 cash divide the cost into its major elements and prepare the consolidation entices as of the acquisition date prepare basic elimination entry and excess value reclassification appeared first on Custom Nursing Help.
"Is this question part of your assignment? We Can Help!"