Johnsen Corporation paid $225,000 for a 70% interest in Jonas Corporation on January 1,2011.On that date,Jonas's balance sheet accounts,at book value and fair value,were as follows:
Required:
1.Prepare the journal entry necessary on January 1,2011 on Jonas Corporation's books.Both companies use push-down accounting and the entity theory.
2.Prepare the balance sheet for Jonas Corporation immediately after the acquisition on January 1,2011.

Question

Johnsen Corporation paid $225,000 for a 70% interest in Jonas Corporation on January 1,2011.On that date,Jonas's balance sheet accounts,at book value and fair value,were as follows:
  Required:
1.Prepare the journal entry necessary on January 1,2011 on Jonas Corporation's books.Both companies use push-down accounting and the entity theory.
2.Prepare the balance sheet for Jonas Corporation immediately after the acquisition on January 1,2011.

Quizplus · Accepted Answer

The Answer of Johnsen Corporation paid $225,000 for a 70% interest in Jonas Corporation on January 1,2011.On that date,Jonas's balance sheet accounts,at book value and fair value,were as follows:
  Required:
1.Prepare the journal entry necessary on January 1,2011 on Jonas Corporation's books.Both companies use push-down accounting and the entity theory.
2.Prepare the balance sheet for Jonas Corporation immediately after the acquisition on January 1,2011.

Johnsen Corporation Paid $225,000 for a 70% Interest in Jonas