b. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired Iits ownership of Scrub for $255,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. No Event Accounts Debit Credit A Retained earnings Common stock 170,000 89,000 Investment in Scrub Company 259,000 Land Goodwill 21,000 O 19,000 O Investment in Scrub Company 4.000 000
b. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired Iits ownership of Scrub for $255,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. No Event Accounts Debit Credit A Retained earnings Common stock 170,000 89,000 Investment in Scrub Company 259,000 Land Goodwill 21,000 O 19,000 O Investment in Scrub Company 4.000 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![b. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business
combination assuming Power acquired its ownership of Scrub for $255,000. (If no entry is required for a transaction/event, select
"No journal entry required" In the first account field.)
Answer is not complete.
No
Event
Accounts
Debit
Credit
A
1.
Retained earnings
170,000 O
Common stock
89,000 O
Investment in Scrub Company
259,000 O
B
2
Land
Goodwill
Investment in Scrub Company
21,000 O
-19,000 O
4,000
Inventories
6,000 8
O000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F38f2cdde-853a-40f7-b427-9b838572b469%2Fdaffe4e4-de8d-4f35-8997-08d455fe4797%2Fifsj9pp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:b. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business
combination assuming Power acquired its ownership of Scrub for $255,000. (If no entry is required for a transaction/event, select
"No journal entry required" In the first account field.)
Answer is not complete.
No
Event
Accounts
Debit
Credit
A
1.
Retained earnings
170,000 O
Common stock
89,000 O
Investment in Scrub Company
259,000 O
B
2
Land
Goodwill
Investment in Scrub Company
21,000 O
-19,000 O
4,000
Inventories
6,000 8
O000
![Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20x9. At the date of acquisition, Scrub
Company reported assets and labilities with book values of $425,000 and $166,000, respectively, common stock outstanding of
$89,000, and retained earnings of $170,000. The book values and fair values of Scrub's assets and labilities were identical except for
land, which had increased in value by $21,000, and inventories, which had decreased by $6,000.
Required:
a Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business
combination assuming Power acquired its ownership of Scrub for $284.000. (Ir no entry is required for a transaction/event, select
"No journal entry required" in the first account field.)
Answer is complete and correct.
No
Event
Accounts
Debit
Credit
Retained eamings
170,000 O
Common atock
09.000 O
Investnent in Scrb Company
259.000 O
Land
21,000 O
10.000 O
Goodwil
Investment in Scrub Company
25,000 O
6.000 O
Inventories
b. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business
combination assuming Power acquired its ownership of Scrub for $255,000. (f no entry is required for a transaction/event, select
"No journal entry required" in the first account field.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F38f2cdde-853a-40f7-b427-9b838572b469%2Fdaffe4e4-de8d-4f35-8997-08d455fe4797%2Fhfx952j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20x9. At the date of acquisition, Scrub
Company reported assets and labilities with book values of $425,000 and $166,000, respectively, common stock outstanding of
$89,000, and retained earnings of $170,000. The book values and fair values of Scrub's assets and labilities were identical except for
land, which had increased in value by $21,000, and inventories, which had decreased by $6,000.
Required:
a Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business
combination assuming Power acquired its ownership of Scrub for $284.000. (Ir no entry is required for a transaction/event, select
"No journal entry required" in the first account field.)
Answer is complete and correct.
No
Event
Accounts
Debit
Credit
Retained eamings
170,000 O
Common atock
09.000 O
Investnent in Scrb Company
259.000 O
Land
21,000 O
10.000 O
Goodwil
Investment in Scrub Company
25,000 O
6.000 O
Inventories
b. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business
combination assuming Power acquired its ownership of Scrub for $255,000. (f no entry is required for a transaction/event, select
"No journal entry required" in the first account field.)
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