Paul & Stephan: on January 1, 20X1, Paul, Inc On January 2, 20X3, Stephan Sold 2,000 Additional Shares in a 90

question 10

Essay

Paul & Stephan: On January 1, 20X1, Paul, Inc. acquired a 90% interest in Stephan Company. The $45,000 excess of purchase price (parent's share only) was attributable to goodwill. On January 1, 20X3, Stephan Company had the following stockholders' equity:
$\begin{array}{lr}\text { Common stock, } \$ 10 \text { par } & \$ 100,000 \\\text { Other paid-in capital } & 200,000 \\\text { Retained earnings } & 300,000\end{array}$ On January 2, 20X3, Stephan sold 2,000 additional shares in a private offering.
-Refer to Paul and Stephan. Stephan issued the new shares for $80 per share; Paul, Inc. purchased all the shares. What is the journal entry that Paul will prepare to record this investment?

---

Definitions:

Creative

Characterized by the ability to perceive the world in new ways, find hidden patterns, make connections between seemingly unrelated phenomena, and generate solutions.

Charismatic/Value-Based

Leadership that combines personal charm and conviction, inspiring followers through the leader's vision and values.

Transformational Leadership

In this leadership style, the leader engages with teams to identify required changes, establishes a guiding vision through inspiration, and carries out the change with the help of devoted group members.

Idealized Influence

A component of transformational leadership where leaders act as role models and earn the admiration, respect, and trust of their followers.