On 1/1/06, Penn acquired 100% of Senn's outstanding common stock. The analysis of the Investment account (in thousands) as of that date follows:
Additional Information:
a. The subsidiary had net income of $70,000 in 2006.
b. The subsidiary declared dividends of $30,000 in 2006.
c. The subsidiary paid dividends of $20,000 on 10/19/06. (The remaining $10,000 of dividends declared in 2006 was paid on 1/20/07.)
d. The bonds have a remaining life of 5 years.
e. The subsidiary's accumulated depreciation at the acquisition date was $55,000.
Required:
Prepare all consolidation entries as of 12/31/06.

Question

On 1/1/06, Penn acquired 100% of Senn's outstanding common stock. The analysis of the Investment account (in thousands) as of that date follows:
  Additional Information:
a. The subsidiary had net income of $70,000 in 2006.
b. The subsidiary declared dividends of $30,000 in 2006.
c. The subsidiary paid dividends of $20,000 on 10/19/06. (The remaining $10,000 of dividends declared in 2006 was paid on 1/20/07.)
d. The bonds have a remaining life of 5 years.
e. The subsidiary's accumulated depreciation at the acquisition date was $55,000.
Required:
Prepare all consolidation entries as of 12/31/06.

Quizplus · Accepted Answer

The Answer of On 1/1/06, Penn acquired 100% of Senn's outstanding common stock. The analysis of the Investment account (in thousands) as of that date follows:
  Additional Information:
a. The subsidiary had net income of $70,000 in 2006.
b. The subsidiary declared dividends of $30,000 in 2006.
c. The subsidiary paid dividends of $20,000 on 10/19/06. (The remaining $10,000 of dividends declared in 2006 was paid on 1/20/07.)
d. The bonds have a remaining life of 5 years.
e. The subsidiary's accumulated depreciation at the acquisition date was $55,000.
Required:
Prepare all consolidation entries as of 12/31/06.

On 1/1/06, Penn Acquired 100% of Senn's Outstanding Common Stock