
On December 31, 200X P Corporation paid $300,000 cash for 80% of the common stock of S Company which becomes a subsidiary. Following information is shown prior to the acquisition being recorded: S market values are: Plant $250,000 Inventory $50,000 Prepare the entries in journal format to record the acquisition and, post to the general ledger accounts. Prepare a consolidation work paper. Prepare consolidated balance sheet.




