On December 31, 2011, Pat Corporation has the following information available:
On December 31, 2011, Anne Corporation buys an 80% interest in Pat Corporation for $160,000.On December 31, 2011, 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, 2012, 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, 2012.
2.On January 1, 2012, 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, 2012.
3.On January 1, 2012, 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, 2012.

Question

On December 31, 2011, Pat Corporation has the following information available:
  On December 31, 2011, Anne Corporation buys an 80% interest in Pat Corporation for $160,000.On December 31, 2011, 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, 2012, 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, 2012.
2.On January 1, 2012, 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, 2012.
3.On January 1, 2012, 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, 2012.

Quizplus · Accepted Answer

The Answer of On December 31, 2011, Pat Corporation has the following information available:
  On December 31, 2011, Anne Corporation buys an 80% interest in Pat Corporation for $160,000.On December 31, 2011, 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, 2012, 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, 2012.
2.On January 1, 2012, 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, 2012.
3.On January 1, 2012, 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, 2012.

On December 31, 2011, Pat Corporation Has the Following Information