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P2-24 Consolidated Worksheet at End of the Second Year of Ownership (Equity Method) LO 2-3,2-5, 2-6 Paper Company acquired 10

January 1, 20X8, when the book value of Scissors net assets was equal to $370,000. Problem 2-23 summarizes the first year of

a. Equity Method Entries on Paper Cos Books: Investment in Scissor Co. Income from Scissor Co. Record Paper Co.s 100% share

Investment in Scissor Co. Income From Scissor Co.

Consolidation Entries DR CR Paper Co. Scissor Co. Consolidated Income Statement Sales Less: COGS Less: Depreciation Expense L

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To Investment in suissor co. Ans. (a) Equity method Entries on paper cos books ů Investment in scissor co. 370000 To Income(r. PAPER Lamp ANY AND SUB SI DIARY. (b) Consolidated financial statement worksheet December 31, 2009 Particulars Paper Co. S348090 232000 1160 DO 16 suono (2 62000 97000 2080DD 193000 15000 515000 51 5000 375000 Balance sheet Assests cash Account Re

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