On 6/1/06, Silex, a 90%-owned subsidiary of Pilex, issued 20,000 shares of its $1 par value common stock to the public for $260,000. The balance in the equity accounts of Silex immediately before the issuance follows:
The analysis of the investment account immediately before the issuance follows:
Required:
(1) Update the analysis as a result of the issuance of the additional shares by Silex.
(2) Prepare the parent's adjusting entry, if any.

Question

On 6/1/06, Silex, a 90%-owned subsidiary of Pilex, issued 20,000 shares of its $1 par value common stock to the public for $260,000. The balance in the equity accounts of Silex immediately before the issuance follows:
  The analysis of the investment account immediately before the issuance follows:
  Required:
(1) Update the analysis as a result of the issuance of the additional shares by Silex.
(2) Prepare the parent's adjusting entry, if any.

Quizplus · Accepted Answer

The Answer of On 6/1/06, Silex, a 90%-owned subsidiary of Pilex, issued 20,000 shares of its $1 par value common stock to the public for $260,000. The balance in the equity accounts of Silex immediately before the issuance follows:
  The analysis of the investment account immediately before the issuance follows:
  Required:
(1) Update the analysis as a result of the issuance of the additional shares by Silex.
(2) Prepare the parent's adjusting entry, if any.

On 6/1/06, Silex, a 90%-Owned Subsidiary of Pilex, Issued 20,000