Please help. I'm trying to follow the examples in the text book, however I'm not sure I'm on the right track. Please help with step-by-step on how the journal entries should be made.
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Pooling: Entry basis is book value of Wheal Company
DR: Investment in Wheal Company* $160,000
CR: Capital stock** 110,000
CR: Other contributed capital*** 15,000
CR: Retained earnings**** 35,000
*Book value of net assets: 250,000-30,000-20,000-40,000=160,000
**issued by Axel
***Total paid in: 100,000+25000 = 125,000
****Retained earnings: balancing figure
The solution examines entries for consolidation of intercorporate investments.