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.
-Johnsen Corporation paid $225,000 for a 70% interest in Jonas Corporation on January 1, 2014. 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, 2014 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, 2014.

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.
-Johnsen Corporation paid $225,000 for a 70% interest in Jonas Corporation on January 1, 2014. 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, 2014 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, 2014.

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.
-Johnsen Corporation paid $225,000 for a 70% interest in Jonas Corporation on January 1, 2014. 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, 2014 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, 2014.

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