Question

A Phepare a consolidation wowrksheet for 20N8 in goout form Ps-3t Consolidated Worksheet at End of the Second Year of ns commion st0:000. P Paper Company acquired S0 percent of Scissor Company's outstaiie on January 1, 2OxS, when the book value of Scissor's net as 3-30 account for investments. The following trial balance summarizes i tions for Paper and Scissor as of December 31, 20xo Year of Ownership (Equity Method) assets was equal to $370,000. Problem nd opera the first year of Paper's ownership ot Scissor. Paper uses the equity Scissor Company Credit Debit Debit Credit 97,000 115,000 193,000 412.000 250.000 875.000 278,000 65,000 312.000 90.000 Investment in Scissor Co 125,000 250,000 178,000 12,000 58,000 30,000 Cost of Goods Sold $ 48.000 $ 630,000 85,000 150,000 625,000 479.400 880,000 85,600 40,000 100,000 250,000 188,000 355,000 Bonds Payable Sales Income from Scissor Company 35,000 $2.935,000 $981 000 $981,000 一 Required a Prepare any equity-method journal entry(ies) related to the investment in Scissor Company during 20X9.

Answer 1

a	Equity method journal entries related to the Investment in Scissor Company 20X9
Date	Description	Debit	Credit
Dec 31, 20X9	Investment in Scissor Company	$85,600
	Income from Scissor Company		$85,600
	(To record income from Scissor's company for 20X9)
Dec 31, 20X9	Cash (30000 x 80%)	$24,000
	Investment in Scissor Company		$24,000
	(To record dividend from Scissor Company for 20X9)