On January 1,20X9,Zigma Company Acquired 100 Percent of Standard Company's

question 21

Essay

On January 1,20X9,Zigma Company acquired 100 percent of Standard Company's common shares at underlying book value.Zigma uses the equity method in accounting for its ownership of Standard.On December 31,20X9,the trial balances of the two companies are as follows:
Required:
1)Prepare the eliminating entries needed as of December 31,20X9,to complete a consolidation worksheet.
2)Prepare a three-part consolidation worksheet as of December 31,20X9.

---

Definitions:

Working Backward

A problem-solving strategy involving starting with the desired final outcome and progressively working towards the starting point to find a solution.

Stairs

Constructed steps that allow people or animals to move from one level to another, typically within buildings or outdoor structures.

Mental Set

A psychological inclination to approach situations in a certain way, based on prior experiences and perceptions, which can impact problem-solving and behavior.

Small Business

A privately owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than a corporation or regular-sized business.