P Company purchased 90% of the common stock of S Company on January 2, 2017 for $900,000. On that date, S Company's stockholders' equity was as follows:
During 2017, S Company earned $200,000 and declared a $100,000 dividend. P Company uses the partial equity method to record its investment in S Company. The difference between implied and book value relates to land.
Required:
Prepared, in general journal form, all eliminating entries for the preparation of a consolidated statements workpaper on December 31, 2017.

Question

P Company purchased 90% of the common stock of S Company on January 2, 2017 for $900,000. On that date, S Company's stockholders' equity was as follows: 
 During 2017, S Company earned $200,000 and declared a $100,000 dividend. P Company uses the partial equity method to record its investment in S Company. The difference between implied and book value relates to land.
Required:
Prepared, in general journal form, all eliminating entries for the preparation of a consolidated statements workpaper on December 31, 2017.

Quizplus · Accepted Answer

The Answer of P Company purchased 90% of the common stock of S Company on January 2, 2017 for $900,000. On that date, S Company's stockholders' equity was as follows: 
 During 2017, S Company earned $200,000 and declared a $100,000 dividend. P Company uses the partial equity method to record its investment in S Company. The difference between implied and book value relates to land.
Required:
Prepared, in general journal form, all eliminating entries for the preparation of a consolidated statements workpaper on December 31, 2017.

P Company Purchased 90% of the Common Stock of S