Lisa Co. paid cash for all of the voting common stock of Victoria Corp. Victoria will continue to exist as a separate corporation. Entries for the consolidation of Lisa and Victoria would be recorded in
A) A worksheet.
B) Lisa's general journal.
C) Victoria's general journal.
D) Victoria's secret consolidation journal.
E) The general journals of both companies.

Question

Quizplus · Accepted Answer

The consolidation entries are typically recorded in a worksheet, not in the general journals of the individual companies, as they are used for internal reporting purposes to combine the financial statements of the parent and subsidiary.

Lisa Co Paid Cash for All of the Voting Common Stock