Consolidated Balance Sheet for Thompson Company
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Thompson Company spent $240,000 to buy all of Lake Corporation's stock on January 1,20X2. The Balance sheets of the two companies on December 31,20X3, showed the following amounts:
[Please see the attached document]
Lake reported retained earning of $100,000 at the date of acquisition. The difference between the purchase price and underlying book value is assigned to buildings and equipment with a remaining economic life of 10 years from the date of acquisition.
Required:
(a) Give the appropriate eliminating entry or entries needed to prepare a consolidated balance sheet as of December 31,20X3.
(b) Prepare a consolidated balance sheet workpaper as of December 31,20X3
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Solution Summary
This tutorial provides instructions on how to create a consolidated balance sheet after a company had acquired the stocks of another corporation.
Education
- BA, Ain Shams University, Cairo Egypt
- MBA, California State University, Sacramento
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