On December 31,2017,Parent Corporation paid $800,000 to acquire 100% of the voting common shares of Child Corporation.At that date Child Corporation had common shares of $500,000 and retained earnings of $250,000.Assume any amount paid in excess of shareholders' equity is attributable to goodwill.
a_Prepare the entry on Parent Corporation's books to record the purchase of
$\text { the Child Corporation shares. }$ b_Show in journal entry format how accounts on the consolidation worksheet
$\text { will be affected by the elimination entry. }$

Question

On December 31,2017,Parent Corporation paid $800,000 to acquire 100% of the voting common shares of Child Corporation.At that date Child Corporation had common shares of $500,000 and retained earnings of $250,000.Assume any amount paid in excess of shareholders' equity is attributable to goodwill.
a_Prepare the entry on Parent Corporation's books to record the purchase of
 $\text { the Child Corporation shares. }$ b_Show in journal entry format how accounts on the consolidation worksheet
 $\text { will be affected by the elimination entry. }$

Quizplus · Accepted Answer

The Answer of On December 31,2017,Parent Corporation paid $800,000 to acquire 100% of the voting common shares of Child Corporation.At that date Child Corporation had common shares of $500,000 and retained earnings of $250,000.Assume any amount paid in excess of shareholders' equity is attributable to goodwill.
a_Prepare the entry on Parent Corporation's books to record the purchase of
 $\text { the Child Corporation shares. }$ b_Show in journal entry format how accounts on the consolidation worksheet
 $\text { will be affected by the elimination entry. }$

On December 31,2017,Parent Corporation Paid $800,000 to Acquire 100% of the Voting