Acquisition of Preferred Shares
The summarized balance sheet of Separate Company on January 1, 20X3, contained the following amounts:
Total Assets | $350,000 | Total Liabilities | $ 50,000 |
|
| Preferred Stock | 100,000 |
|
| Common Stock | 50,000 |
|
| Retained Earnings | 150,000 |
Total Assets | $350,000 | Total Liabilities and Equities | $350,000 |
On January 1, 20X3, Joint Corporation acquired 70 percent of the common shares and 60 percent of the preferred shares of Separate Company at underlying book value. At that date, the fair value of the noncontrolling interest in Separate’s common stock was equal to 30 percent of the book value of its common stock.
Required
Give the worksheet elimination entries needed to prepare a consolidated balance sheet immediately following the purchase of shares by Joint.
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