Chap005_Day1_class

Chap005_Day1_class - e ie of Chapter 4 Review of Chapter 4...

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Unformatted text preview: e ie of Chapter 4 Review of Chapter 4 Consolidation, Date of Acquisition (100% ownership) limination Entries Elimination Entries How many elimination entries do we have d ? to do? Purpose of each elimination entry? 1 Elimination Entry (1) ommon stock (subsidiary) xx Common stock (subsidiary) xx Additional PIC (subsidiary) xx Balances on ubs Books Retained earnings (subsidiary) xx Differential Sub s Books Investment in subsidiary (parent) xx liminate intercompany stockholdings ) (Eliminate intercompany stockholdings.) Balance in Account 2 Elimination entries can only be posted to the worksheet Elimination Entry E(2) Elimination Entry E(2) The elimination entry (E2) is used to allocate the differential: Specific asset accounts XX Specific liability accounts XX Goodwill XX Differential XX Specific asset accounts XX pecific liability accounts X Specific liability accounts XX an asset has FV > (<) BV debit (credit) this asset account; 3 If an asset has FV > (<) BV, debit (credit) this asset account; If a liability has FV > (<) BV, credit (debit) this liability account. Chapter 5 Day 1 Consolidation,...
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Chap005_Day1_class - e ie of Chapter 4 Review of Chapter 4...

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