Use the following information to answer the question(s) below.
On January 1, 2014, Penelope Company acquired a 90% interest in Leah Company for $180,000 cash. On January 1, 2014, Leah Company had the following assets and liabilities:
Push-down accounting is used for the acquisition.
-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

Use the following information to answer the question(s) below.
On January 1, 2014, Penelope Company acquired a 90% interest in Leah Company for $180,000 cash. On January 1, 2014, Leah Company had the following assets and liabilities:
  Push-down accounting is used for the acquisition.
-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 Use the following information to answer the question(s) below.
On January 1, 2014, Penelope Company acquired a 90% interest in Leah Company for $180,000 cash. On January 1, 2014, Leah Company had the following assets and liabilities:
  Push-down accounting is used for the acquisition.
-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.

Use the Following Information to Answer the Question(s) Below