Pattalle Co purchases Senday, Inc.on January 1 of the current year for $70,000 more than the fair value of Senday's net assets.Push-down accounting is used.At that date, the following values exist:
Requirement: Determine what amounts will appear in the listed accounts on Pattalle's general ledger, on Senday's general ledger, and on the consolidated balance sheet immediately following the acquisition.Make sure you post the entry to record the investment on Pattalle's books.

Question

Pattalle Co purchases Senday, Inc.on January 1 of the current year for $70,000 more than the fair value of Senday's net assets.Push-down accounting is used.At that date, the following values exist:
  Requirement: Determine what amounts will appear in the listed accounts on Pattalle's general ledger, on Senday's general ledger, and on the consolidated balance sheet immediately following the acquisition.Make sure you post the entry to record the investment on Pattalle's books.

Quizplus · Accepted Answer

The Answer of Pattalle Co purchases Senday, Inc.on January 1 of the current year for $70,000 more than the fair value of Senday's net assets.Push-down accounting is used.At that date, the following values exist:
  Requirement: Determine what amounts will appear in the listed accounts on Pattalle's general ledger, on Senday's general ledger, and on the consolidated balance sheet immediately following the acquisition.Make sure you post the entry to record the investment on Pattalle's books.

Pattalle Co Purchases Senday, Inc