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 balance in accounts receivable did Y Company report at December 31,2008?
A)$28,000
B)$48,000
C)$40,000
D)$38,000

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 balance in accounts receivable did Y Company report at December 31,2008?
A)$28,000 
B)$48,000 
C)$40,000 
D)$38,000

Quizplus · Accepted Answer

The only receivable mentioned in the question is for consulting services provided by X Company to Y Company. As of December 31, 2008, Y Company has not yet paid for those services. Therefore, Y Company would report a balance of $38,000 in accounts receivable (the amount owed to X Company for the consulting services) on its balance sheet.

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