On january 1 2009 pert company purchased 85 of the

Reference no: EM13597861

On January 1, 2009, Pert Company purchased 85% of the outstanding common stock of Sales Company for $350,000. On that date, Sales Company's stockholders' equity consisted of common stock, $100,000; other contributed capital, $40,000; and retained earnings $140,000. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than it's fair value.

During 2009 Sales Company earned $148,000 and declared and paid a $50,000 dividend. Pert Company used the partial equity method to record its investment in Sales Company.

Required:
A. Prepare the investment entries on Pert Company's books for 2009.
B. Prepare the workpaper eliminating entries for a workpaper on December 31, 2009.

Reference no: EM13597861

Questions Cloud

Farber corp a distributor of her-based sunscreen is ready : farber corp. a distributor of her-based sunscreen is ready to begin its 3-quarter in which peak sales occur. the

Employee salaries and wages were accrued as follows direct : almeda products inc. uses a job-order costing system. the companys inventory balances on april 1 the start of its

As an hrm professional you have just been hired by the abc : as an hrm professional you have just been hired by the abc company as the new hr director. senior management has

The charter of a corporation provides for the issuance of : 1. the cost of a product warranty should be included as an expense in the points 2 period the cash is collected for a

On january 1 2009 pert company purchased 85 of the : on january 1 2009 pert company purchased 85 of the outstanding common stock of sales company for 350000. on that date

Farber corp a distributor of her-based sunscreen is ready : farber corp. a distributor of her-based sunscreen is ready to begin its 3-quarter in which peak sales occur. the

You are the hiring managerrecruiter for a position of vice : you are the hiring managerrecruiter for a position of vice president of sales for a company which sells athletic shoes

Luisa has worked for a 2500-employee chemical manufacturer : luisa has worked for a 2500-employee chemical manufacturer poyson for two years. she went to work monday morning to

In its 2010 annual report xyz co reported beginning total : in its 2010 annual report xyz co. reported beginning total assets of 32.0 billion ending total assets of 49.2 billion

User Account

All Pages