P Company purchased 90% of the common stock of S Company on January 2,2017 for $900,000.On that date,S Company's stockholders' equity was as follows:
During 2017,S Company earned $200,000 and declared a $100,000 dividend.P Company uses the partial equity method to record its investment in S Company.The difference between implied and book value relates to land.
Required:
Prepared,in general journal form,all eliminating entries for the preparation of a consolidated statements workpaper on December 31,2017.

Question

P Company purchased 90% of the common stock of S Company on January 2,2017 for $900,000.On that date,S Company's stockholders' equity was as follows:
  During 2017,S Company earned $200,000 and declared a $100,000 dividend.P Company uses the partial equity method to record its investment in S Company.The difference between implied and book value relates to land.
Required:
Prepared,in general journal form,all eliminating entries for the preparation of a consolidated statements workpaper on December 31,2017.

Quizplus · Accepted Answer

The Answer of P Company purchased 90% of the common stock of S Company on January 2,2017 for $900,000.On that date,S Company's stockholders' equity was as follows:
  During 2017,S Company earned $200,000 and declared a $100,000 dividend.P Company uses the partial equity method to record its investment in S Company.The difference between implied and book value relates to land.
Required:
Prepared,in general journal form,all eliminating entries for the preparation of a consolidated statements workpaper on December 31,2017.

P Company Purchased 90% of the Common Stock of S