On December 31,2008,X Company acquired controlling ownership of Y Company.A consolidated balance sheet was prepared immediately.Partial balance sheet data for the two companies and the consolidated entity at that date follow:
During 2008,X Company provided consulting services to Y Company and has not yet been paid for them.There were no other receivables or payables between the companies at December 31,2008.

-Based on the information given,what is the amount of unpaid consulting services at December 31,2008,on work done by X Company for Y Company?
A)$0
B)$10,000
C)$5,000
D)$15,000

Question

On December 31,2008,X Company acquired controlling ownership of Y Company.A consolidated balance sheet was prepared immediately.Partial balance sheet data for the two companies and the consolidated entity at that date follow:
During 2008,X Company provided consulting services to Y Company and has not yet been paid for them.There were no other receivables or payables between the companies at December 31,2008.
 
-Based on the information given,what is the amount of unpaid consulting services at December 31,2008,on work done by X Company for Y Company?
A)$0 
B)$10,000 
C)$5,000 
D)$15,000

Quizplus · Accepted Answer

The balance sheet data shows that there were no other receivables or payables between the companies at December 31, 2008, except for the fact that X Company provided consulting services to Y Company and has not yet been paid for them. Therefore, the amount of unpaid consulting services at December 31, 2008, would be the amount for which X Company has not been paid, which is stated to be $10,000 in the answer choice B.

On December 31,2008,X Company Acquired Controlling Ownership of Y Company