b. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the businesscombination 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.NoEventAccountsDebitCreditA1.Retained earnings170,000 OCommon stock89,000 OInvestment in Scrub Company259,000 OB2LandGoodwillInvestment in Scrub Company21,000 O-19,000 O4,000Inventories6,000 8O000 Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20x9. At the date of acquisition, ScrubCompany 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 forland, 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 businesscombination 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.NoEventAccountsDebitCreditRetained eamings170,000 OCommon atock09.000 OInvestnent in Scrb Company259.000 OLand21,000 O10.000 OGoodwilInvestment in Scrub Company25,000 O6.000 OInventoriesb. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the businesscombination 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.)

The question is based on the concept of Financial Accounting.

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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