On January 1,2014,Jeff Company Acquired a 90% Interest in Marian

question 23

Essay

On January 1,2014,Jeff Company acquired a 90% interest in Marian Company for $198,000 cash.On January 1,2014,Marian Company had the following assets and liabilities:
$$\begin{array} { l l } \text { Liabilities } & \$ 25,000 & \$ 25,000 \\\text { Capital Stock } & 100,000 \\\text { Retained Earnings } & \underline { 10,000 }\end{array}$$ Total Liabilities &
Push-down accounting is used for the acquisition.
Required:
1.Assume both companies use the entity theory.Prepare the elimination entry(ies)on consolidating work papers on January 1,2014.
2.Assume both companies use the parent company theory.Prepare the elimination entry(ies)on consolidating work papers on January 1,2014.

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