On December 31, 2013, Pat Corporation has the following information available:
On December 31, 2013, Anne Corporation buys an 80% interest in Pat Corporation for $160,000. On December 31, 2013, the fair value of Pat's assets and liabilities are equal to the respective book values. Use four decimal places for the ownership percentage.
Required:
1. On January 1, 2014, Pat Corporation sells 2,000 additional shares of common stock to noncontrolling stockholders at $20 per share. Prepare the journal entry for Anne Corporation on January 1, 2014.
2. On January 1, 2014 Pat Corporation sells 2,000 additional shares of common stock to noncontrolling stockholders at $35 per share. Prepare the journal entry for Anne Corporation on January 1, 2014.
3. On January 1, 2014, Pat Corporation sells 2,000 additional shares of common stock to noncontrolling stockholders at $15 per share. Prepare the journal entry for Anne Corporation on January 1, 2014.

Question

On December 31, 2013, Pat Corporation has the following information available:
  On December 31, 2013, Anne Corporation buys an 80% interest in Pat Corporation for $160,000. On December 31, 2013, the fair value of Pat's assets and liabilities are equal to the respective book values. Use four decimal places for the ownership percentage.
Required:
1. On January 1, 2014, Pat Corporation sells 2,000 additional shares of common stock to noncontrolling stockholders at $20 per share. Prepare the journal entry for Anne Corporation on January 1, 2014.
2. On January 1, 2014 Pat Corporation sells 2,000 additional shares of common stock to noncontrolling stockholders at $35 per share. Prepare the journal entry for Anne Corporation on January 1, 2014.
3. On January 1, 2014, Pat Corporation sells 2,000 additional shares of common stock to noncontrolling stockholders at $15 per share. Prepare the journal entry for Anne Corporation on January 1, 2014.

Quizplus · Accepted Answer

The Answer of On December 31, 2013, Pat Corporation has the following information available:
  On December 31, 2013, Anne Corporation buys an 80% interest in Pat Corporation for $160,000. On December 31, 2013, the fair value of Pat's assets and liabilities are equal to the respective book values. Use four decimal places for the ownership percentage.
Required:
1. On January 1, 2014, Pat Corporation sells 2,000 additional shares of common stock to noncontrolling stockholders at $20 per share. Prepare the journal entry for Anne Corporation on January 1, 2014.
2. On January 1, 2014 Pat Corporation sells 2,000 additional shares of common stock to noncontrolling stockholders at $35 per share. Prepare the journal entry for Anne Corporation on January 1, 2014.
3. On January 1, 2014, Pat Corporation sells 2,000 additional shares of common stock to noncontrolling stockholders at $15 per share. Prepare the journal entry for Anne Corporation on January 1, 2014.

On December 31, 2013, Pat Corporation Has the Following Information