Keen and Lax Inc had the following balance sheets on October 31, 2012: Assuming that Keen Purchases 80% of Lax for a consideration of $240,000, 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.

Question

Keen and Lax Inc had the following balance sheets on October 31, 2012:  Assuming that Keen Purchases 80% of Lax for a consideration of $240,000, 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.

Quizplus · Accepted Answer

The Answer of Keen and Lax Inc had the following balance sheets on October 31, 2012:  Assuming that Keen Purchases 80% of Lax for a consideration of $240,000, 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.

Keen and Lax Inc Had the Following Balance Sheets on October