On January 1, 2011, P Company purchased all of the outstanding common stock of S Company. Which of the following represents the worksheet entry needed to consolidate the balance sheets of the two companies?
A) Investment in S XXX Common stock XXX
Retained earnings XXX
B) Investment in S XXX Retained earnings XXX
C) Common stock XXX Retained earnings XXX
Investment in S XXX
D) Retained earnings XXX Investment in S XXX
Correct Answer:
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