The working paper elimination (in journal entry format) for Parson Corporation and subsidiary on February 28, 2005, (the date of the business combination) was as follows:
For the fiscal year ended February 28, 2006, Sexton had a net income of $120,000 and declared a dividend of $40,000 to Parson. Sexton includes straight-line depreciation in operating expenses. Goodwill was unimpaired on February 28, 2006.
Prepare a working paper elimination (in journal entry format) for Parson Corporation and subsidiary on February 28, 2006. Omit explanation and disregard income taxes.

Question

The working paper elimination (in journal entry format) for Parson Corporation and subsidiary on February 28, 2005, (the date of the business combination) was as follows:
  For the fiscal year ended February 28, 2006, Sexton had a net income of $120,000 and declared a dividend of $40,000 to Parson. Sexton includes straight-line depreciation in operating expenses. Goodwill was unimpaired on February 28, 2006.
 Prepare a working paper elimination (in journal entry format) for Parson Corporation and subsidiary on February 28, 2006. Omit explanation and disregard income taxes.

Quizplus · Accepted Answer

The Answer of The working paper elimination (in journal entry format) for Parson Corporation and subsidiary on February 28, 2005, (the date of the business combination) was as follows:
  For the fiscal year ended February 28, 2006, Sexton had a net income of $120,000 and declared a dividend of $40,000 to Parson. Sexton includes straight-line depreciation in operating expenses. Goodwill was unimpaired on February 28, 2006.
 Prepare a working paper elimination (in journal entry format) for Parson Corporation and subsidiary on February 28, 2006. Omit explanation and disregard income taxes.

The Working Paper Elimination (In Journal Entry Format) for Parson