The stockholders' equity of Sprague Company on August 31, 2006, was as follows:
On August 31, 2006, Pommel Corporation paid $900,000 cash, including direct out-of-pocket costs of the business combination, for 48,000 shares of Sprague's outstanding common stock. The current fair values of Sprague's identifiable net assets were equal to their carrying amounts on August 31, 2006.
Prepare working paper eliminations (in journal entry format) for Pommel Corporation and subsidiary on August 31, 2006. Omit explanations and disregard income taxes.

Question

The stockholders' equity of Sprague Company on August 31, 2006, was as follows:
  On August 31, 2006, Pommel Corporation paid $900,000 cash, including direct out-of-pocket costs of the business combination, for 48,000 shares of Sprague's outstanding common stock. The current fair values of Sprague's identifiable net assets were equal to their carrying amounts on August 31, 2006.
Prepare working paper eliminations (in journal entry format) for Pommel Corporation and subsidiary on August 31, 2006. Omit explanations and disregard income taxes.

Quizplus · Accepted Answer

The Answer of The stockholders' equity of Sprague Company on August 31, 2006, was as follows:
  On August 31, 2006, Pommel Corporation paid $900,000 cash, including direct out-of-pocket costs of the business combination, for 48,000 shares of Sprague's outstanding common stock. The current fair values of Sprague's identifiable net assets were equal to their carrying amounts on August 31, 2006.
Prepare working paper eliminations (in journal entry format) for Pommel Corporation and subsidiary on August 31, 2006. Omit explanations and disregard income taxes.

The Stockholders' Equity of Sprague Company on August 31, 2006