Partel Corporation purchased 75% of Sandford Corporation on January 1,2014,for $230,000.Balance sheets for the two companies on this date,prepared just prior to the purchase,are provided below.
Required:
1.Prepare a consolidated balance sheet using the entity theory of consolidation.
2.Prepare a consolidated balance sheet using the parent company theory of consolidation.

Question

Partel Corporation purchased 75% of Sandford Corporation on January 1,2014,for $230,000.Balance sheets for the two companies on this date,prepared just prior to the purchase,are provided below.
   Required:
1.Prepare a consolidated balance sheet using the entity theory of consolidation.
2.Prepare a consolidated balance sheet using the parent company theory of consolidation.

Quizplus · Accepted Answer

The Answer of Partel Corporation purchased 75% of Sandford Corporation on January 1,2014,for $230,000.Balance sheets for the two companies on this date,prepared just prior to the purchase,are provided below.
   Required:
1.Prepare a consolidated balance sheet using the entity theory of consolidation.
2.Prepare a consolidated balance sheet using the parent company theory of consolidation.

Partel Corporation Purchased 75% of Sandford Corporation on January 1,2014,for