On January 1,2011,Jennifer Company acquired a 90% interest in Jayda Company for $270,000 cash.On January 1,2011,Jayda Company had the following assets and liabilities:
Push-down accounting is used for the acquisition.Both companies use the entity theory.
Required:
1.What is the goodwill associated with Jayda Company on January 1,2011?
2.Prepare the journal entry(ies)on Jayda's books on January 1,2011.
3.Prepare the journal entry(ies)on Jennifer's books on January 1,2011.
4.Prepare the elimination entry(ies)on the consolidating working papers on January 1,2011.

Question

On January 1,2011,Jennifer Company acquired a 90% interest in Jayda Company for $270,000 cash.On January 1,2011,Jayda Company had the following assets and liabilities:
  Push-down accounting is used for the acquisition.Both companies use the entity theory.
Required:
1.What is the goodwill associated with Jayda Company on January 1,2011?
2.Prepare the journal entry(ies)on Jayda's books on January 1,2011.
3.Prepare the journal entry(ies)on Jennifer's books on January 1,2011.
4.Prepare the elimination entry(ies)on the consolidating working papers on January 1,2011.

Quizplus · Accepted Answer

The Answer of On January 1,2011,Jennifer Company acquired a 90% interest in Jayda Company for $270,000 cash.On January 1,2011,Jayda Company had the following assets and liabilities:
  Push-down accounting is used for the acquisition.Both companies use the entity theory.
Required:
1.What is the goodwill associated with Jayda Company on January 1,2011?
2.Prepare the journal entry(ies)on Jayda's books on January 1,2011.
3.Prepare the journal entry(ies)on Jennifer's books on January 1,2011.
4.Prepare the elimination entry(ies)on the consolidating working papers on January 1,2011.

On January 1,2011,Jennifer Company Acquired a 90% Interest in Jayda