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…

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):

Assets:                                                                           Parent                       Subsidiary

                                                                                   Corporation                        Inc.

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

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

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more