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
See attached file for full problem description.
The journal entries on the books of B.N. Counter for (a), (b), and (c) would look like:
As of Jan. 2 12,000
75% of investment 6,750
As of Jan. 2 39,000
75% of investment 22,500
As of Jan. 2 86,000
75% of ...
This Solution provides the necessary journal entries and the consolidated balance sheet.