Assuming That Keen Inc

question 3

Essay

Assuming that Keen Inc. purchases 100% of Lax Inc. for $200,000, prepare: a) the journal entry that Keen Inc. would make to record the acquisition; b) the elimination entry necessary to produce consolidated balance sheet on the acquisition date.

---

Definitions:

Opposite Direction

Referring to a movement, orientation, or action that is directly contrary or reverse to another.

Creatine Phosphate

A high-energy reserve molecule in muscles and the brain that donates phosphate to ADP to regenerate ATP during the first seconds of intense work.

ATP

Adenosine triphosphate (ATP) is a complex organic chemical that provides energy to drive many processes in living cells.

Central Cavity

An internal space or chamber within a structure or organism, often referring specifically to the large, fluid-filled space in sponges.