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B.N. Counter Corporation

A) Record the business combination on the books of B.N. Counter Corporation
b) Present in general journal form all elimination entries needed in a work paper to prepare a
Consolidated balance sheet immediately following the business combination on Jan. 2, 20X8.
c) Prepare and complete a consolidated balance sheet work paper as of January 2, 20X8,
Immediately following the business combination.
d) Present a consolidated balance sheet for B.N. Counter and its subsidiary as of January
2, 20X8

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Solution Preview

The journal entries on the books of B.N. Counter for (a), (b), and (c) would look like:

Cash 18,750
As of Jan. 2 12,000
75% of investment 6,750

Receivables 61,500
As of Jan. 2 39,000
75% of investment 22,500

Inventory 140,000
As of Jan. 2 86,000
75% of ...

Solution Summary

This Solution provides the necessary journal entries and the consolidated balance sheet.