Prepare the necessary eliminating journal entries

Assignment Help Accounting Basics
Reference no: EM132230607

Question - Parent Corporation paid $105,000 to acquire 75% of the common shares of Subsidiary Inc. on December 31, 2017. At that date, Parent Corporation also had an outstanding note payable to Subsidiary Inc. in the amount of $20,000. Assume that Parent Corporation and Subsidiary Inc. had the following account balances at December 31, 2017 (immediately after the investment):

 

Parent Corporation

Subsidiary Inc.

Assets:

 

 

Cash

$35,000

$15,000

Note receivable from Parent Corporation

 

20,000

Inventory

120,000

30,000

Investment in Subsidiary Inc.

105,000

 

Other assets

495,000

65,000

Total

$755,000

$130,000

Liabilities and shareholders' equity:

 

 

Accounts payable

$15,000

$10,000

Note payable to Subsidiary Inc.

20,000

 

Common shares

500,000

90,000

Retained earnings

220,000

30,000

Total

$755,000

$130,000

Required - Prepare the necessary eliminating journal entries that would appear on the December 31, 2014 worksheet for a consolidated balance sheet.

Reference no: EM132230607

Questions Cloud

Define and explain mark-to-market accounting approach : Define and explain mark-to-market accounting approach and give examples where Enron's management / accountants perhaps misused this approach
Compute the correct balance for ending inventory on Dec : Hewett sold goods costing $38,000 to Trump Enterprises on Dec. 28. Based on the above information, the correct balance for ending inventory on Dec. 31 is
What is the value of the ending inventory of product a : The firm uses the net realizable value method to allocate joint costs and by-product costs. What is the value of the ending inventory of product A
How much of the joint cost of each production : Assuming that both products are sold at the split-off point, how much of the joint cost of each production run is allocated to Smooth Skin
Prepare the necessary eliminating journal entries : Prepare the necessary eliminating journal entries that would appear on the December 31, 2014 worksheet for a consolidated balance sheet
Prepare consolidated balance sheet at december : Parent Corporation paid $90,000 to acquire all the common shares of Subsidiary Inc. on December 31, 2018. Prepare consolidated balance sheet at December
Define area of knowledge management in the real world : In this assignment, you will focus on one area of knowledge management in the real world and discuss how technology can assist in making this area.
Discuss the new technology advantages and disadvantages : Discuss the new technology's advantages and disadvantages. Discuss the evolution of the technology. Contrast its current functionality with the functionality.
What are some advantages to your methods : Why is it so important to formulate your brief for a data presentation? Discuss some ways you would implement to formulate an effective brief.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd