Catres Debnam

Acc 401

Wk 2 homework ch 3

Exercise

3-3

Step 1

On January 2, 2011, P Company acquired 90 percent of the outstanding common stock of S company for paying 192,000.

(a) Journal entry to record the purchase of common stock of S corporation is as follows

Step 2

b. Balance Sheet

Balance sheet is a statement of financial position. It is one of the main reports in financial statements. It shows the financial position of the company. Balance sheet will be prepared for a specific period. It summarizes a company's assets, liabilities and shareholders' equity. It is prepared by using accounting equation that is 'Assets Liabilities Stockholders' Equity'.

Consolidated balance sheet at the date of acquisition of P Company and subsidiary is

Step 3

Step 4

3-5

Step 1

P...