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On December 31, 20X3, Broadway Corporation reported common stock outstanding of $200,000, additional paid-in capital of...

On December 31, 20X3, Broadway Corporation reported common stock outstanding of $200,000, additional paid-in capital of $300,000, and retained earnings of $100,000. On January 1, 20X4, Johe Company acquired control of Broadway in a business combination.

Required:
Give the Consolidation entry that would be needed in preparing a consolidated balance sheet immediately following the combination if Johe acquired all of Broadway’s outstanding common stock for $600,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

A) Record the basic consolidation entry

Solutions

Expert Solution

A) Basic consolidation entry:

Date General Journal Debit Credit
January 1, 20X4 Common stock 200000
Additional paid-in capital 300000
Retained earnings 100000
Investment in Broadway Corp. 600000

ekkarill92 answered 2 years ago
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