On January 1, 2016, Paul, Inc On January 2, 2018, Stephan Sold 2,000 Additional Shares in Stephan

question 26

Short Answer

On January 1, 2016, 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, 2018, 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, 2018, Stephan sold 2,000 additional shares in a private offering.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?
?
a.
$\begin{array}{lcr}\text { Investment in Stephan } & 160,000 & \\\quad \text { Cash } & & 160,000 \\\end{array}$
b. $\begin{array}{lcr}\text { Investment in Stephan } & 156,692 & \\\quad \text { Paid-in Capital in Excess of Par-Paul } & & 3,308 \\\text { Cash } & & 160,000\end{array}$
c.
$\begin{array}{lrc}\text { Investment in Stephan } & 157,527 & \\\text { Paid-in Capital in Excess of Par-Paul } & 2,473 & \\\quad \text { Cash } & & 160,000 \\\end{array}$
d.
$\begin{array}{lrc}\text { Investment in Stephan } & 160,000 & \\\quad \text { Paid-in Capital in Excess of Par-Paul } & & 2,829 \\\quad \text { Cash } & & 157,171\end{array}$

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An individual’s perception of self, encompassing beliefs, feelings, and thoughts about one’s identity and abilities.

Family Structure

The legal and genetic relationships among relatives living in the same home. Possible structures include nuclear family, extended family, stepfamily, single-parent family, and many others.

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